An agreement between WAPDA Second Sukuk Company Limited and lead arrangers - National Bank of Pakistan, Standard Chartered Bank Limited and Dubai Islamic Bank Pakistan Limited, was signed at a ceremony held at WAPDA House here Saturday.
The ceremony was witnessed by WAPDA Chairman Tariq Hameed and other senior officials. Member WAPDA Abdul Qadeer, SEVP, NBP, Masood Karim, Country Business Manager, DIB, Zafar Masood and Head of Client Relations, Standard Chartered Bank Pakistan, Imran Ahad signed the agreement on behalf of their respective organisations. “This is the second issue being launched by WAPDA to raise a sum of Rs 8 billion required for three projects.
The first Sukuk bond was launched for the Mangla project,” the WAPDA chairman told the media men at the agreement signing ceremony. He hoped that the Sukuk issue would be beneficial for both WAPDA and the banks acting as lead arrangers. Talking about issue tenure, Tariq Hameed said that the total period was ten years with a grace period of four years. The projects to be financed by raising this bond are Khan Khwar (72 Megawatt), Allai Khwar (121 Megawatt) and Duber Khwar (130 Megawatt). The total cost of these projects is Rs 13.449b. Tariq Hameed said that individuals, institutions, trusts, employees’ funds, corporate bodies including islamic banks, modrabas, insurance companies and non-Islamic banking financial institutions can purchase the certificates. Sukuk is the plural of an Arabic word ‘Sek’, which means ‘shariah compliant financial instrument’.