KARACHI: Meezan Bank and Pakistan Kuwait Investment Company (Pvt) Limited-led Long Term Sukuk transaction, structured for Enertech, received two prestigious awards including ‘Pakistan Deal of the Year’ and ‘Most innovative Deal of the Year’ by Islamic Finance News (IFN), REDmoney Group, Malaysia. Meezan Bank is also acting as Investment Agent, Security Agent and Accounts Bank for the Sukuk transaction.

IFN announced the EnerTech’s Sukuk as the ‘Most Innovative Deal of the Year’ globally ahead of sukuk issuances by Maybank in Malaysia and Kuveyt Turk in Turkey. EnerTech’s Sukuk facility of Rs 2 billion has been structured as a quasi-equity instrument embedded with conversion and put option.

IFN commented in relation to the deal: “Enertech’s innovation flows from its structure. The Sukuk are designed as a quasi-equity instrument to finance the local equity requirement of a 60km water pipeline project being developed by Enertech in Thar, Sindh. This highly structured transaction inserts the Sukuk holders into a concession agreement. This has previously been challenging for Islamic financiers to achieve in project financings.”

EnerTech has also been awarded the ‘Pakistan Deal of the Year’. Other short-listed transactions, which received honourable mentions in the category, included Pakistan Mobile Communications Limited (PMCL) syndicated finance facility and the Government of Pakistan’s Euro Sukuk facility. IFN stated: “Enertech reflects a significant increase in the Pakistani markets’ sophistication. The capital of the project obligor was strengthened through a quasi-equity Sukuk offering. This created a sound financial footing for the Meezan Bank led syndicate to complete the financing.” IFN also short-listed the Long-Term Project Finance Facility of PKR 25.5 billion for Enertech under the category of ‘Project and Infrastructure Finance Deal of the Year’ globally.

Copyright Business Recorder, 2022