Ministry of Finance has extended approval to KSEW to issue the second tranche of Sukuk upto an extent of Rs 1,900 million, says a Press Release. The proceeds from the issue will be utilised towards improving the present product offering of KSEW and to undertake other engineering initiatives including but not limited to shipbuilding, engineering works for ships, dry docking etc, the release said.
Dubai Islamic Bank Pakistan Limited (DIBP) acted as the Lead Advisor and Structuring Agent for this issue. The total issue amount of Rs 4.2 billion has been successfully placed by the Joint Arrangers, DIBP and JS Bank Limited (JSBL).
It said that a signing ceremony has been arranged for the participants to the issue on Wednesday, January 16 at 3.00 pm at the Head Office of JS Bank limited. The transaction is envisaged through an issue of up to Rs 4,200 million including a green shoe option of Rs 1,200 million.
The tenor of the issue will be eight years, with principal payment in eight equal semi-annual instalments commencing from the 54th month from the date of first disbursement (ie a grace period of 4 years from the first drawdown date), backed by Government of Pakistan Guarantee and attractively priced at 6 Month KIBOR plus 0.40 percent p.a. Principal payment is secured against unconditional and irrevocable First Demand Guarantee from the Government of Pakistan (GoP). Additionally, GoP has undertaken to bear the financial cost of the issue, the release said.
Karachi Shipyard and Engineering Works Limited is the only heavy engineering establishment of the country that is catering for its shipbuilding, ship repairing and heavy/general engineering requirements. It has played a historical role in transferring of technologies and broadening the industrial base of the country. KSEW was established in mid fifties as a project of PIDC and was incorporated as a public limited company in 1957.-PR