Power Holding Limited moves to redeem Rs400bn energy sukuk early

September 24, 2025 (MLN):  Power Holding Limited’s board of directors has approved the early redemption of two major Islamic bond Pakistan Energy Sukuk-I (PESC-I) and Pakistan Energy Sukuk-II (PESC-II) totaling nearly Rs400 billion.

The decision effects PESC-I worth Rs200bn in Shariah-compliant sukuk certificates issued in March 2019, and PESC-II valued at Rs199.97bn in Islamic bonds issued in May 2020, the aforementioned information was disseminated through a notification to Exchange.

Both sukuk issues are listed securities that were originally sold to eligible institutional and retail investors, with Meezan Bank Limited serving as trustee and investment agent for both tranches.

The early redemption will allow the company to optimize its capital structure and potentially reduce financing costs, though specific reasons for the timing were not disclosed in today's announcement.

The company will also need to obtain all necessary regulatory approvals, including clearance from the Pakistan Stock Exchange Limited.

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 between Power Holding and Meezan Bank following stakeholder approvals.

Copyright Mettis Link News