Rs eight billion Wapda Sukuk bond deal signed: three power projects to be financed

An agreement between Wapda Second Sukuk Company Limited and lead arrangers National Bank of Pakistan, Standard Chartered Bank and Dubai Islamic Bank Pakistan was signed at Wapda House here on Saturday. The ceremony was witnessed by Wapda Chairman Tariq Hameed and other senior officials.
Member Wapda Abdul Qadeer Chaudhary, National Bank of Pakistan (NBP) Senior Executive Vice President Masood Karim Sheikh, Dubai Islamic Bank (DIB) Country Business Manager Zafar Masood and Standard Chartered Bank Pakistan Head of Client Relations Imran Ahad signed the agreement on behalf of their respective organisations.
Wapda Chairman Tariq Hameed told media men at the agreement signing ceremony: "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."
He expressed hope that the Sukuk issue would be beneficial for both Wapda and the banks acting as lead arrangers. Tariq said that total tenure period of the issue 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). Total cost of these projects is Rs 13.449 billion.
He said that individuals, institutions, trusts, employees'' funds, corporate bodies including Islamic banks, modarabas, 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''.