Power Holding Limited’s board of directors has approved the early redemption of two major Islamic bonds, Pakistan Energy Sukuk-I (PESC-I) and Pakistan Energy Sukuk-II (PESC-II), totaling nearly Rs 400 billion.
The redemption will impact PESC-I, which is valued at Rs 200 billion in Shariah-compliant sukuk certificates issued in March 2019, and PESC-II, valued at Rs 199.97 billion in Islamic bonds issued in May 2020. The information was disclosed through a notification to the Pakistan Stock Exchange.
Both sukuk issues are listed securities originally sold to eligible institutional and retail investors, with Meezan Bank Limited acting as trustee and investment agent for both tranches. The early redemption is intended to optimize Power Holding’s capital structure and potentially reduce financing costs, though the specific reasons for the timing were not revealed.
The company will need to obtain all necessary regulatory approvals, including clearance from the Pakistan Stock Exchange. Upon redemption, certificate holders will receive the full outstanding principal amounts plus accrued profit/rental, subject to applicable zakat and withholding tax deductions.
The exact redemption date will be mutually agreed upon between Power Holding and Meezan Bank, following stakeholder approvals. Power Holding has also indicated that formal notices of intent for the early redemption will be sent to all certificate holders soon.
