January 20, 2020 (MLN): Nishat Chunian Power Limited is slated to issue Listed, Rated, Privately Placed, Medium Term Sukuk of up to PKR 2,500 Million (Inclusive of Green Shoe Option of up to PKR 500 Million), as an instrument of redeemable capital.
Consequently, the Company has mandated BankIslami to act as Lead Advisor and Arranger for the transaction, which will be structured on Musharkah basis. The proceeds of the transaction will be utilized by the Company to meet the general business requirement as allowed under its Memorandum & Article of Association.
The Proposed Sukuk Issue will have tenor of two years, inclusive of 6-month grace period. The issue is expected to receive rating of ‘A+’. The Sukuk offers semiannually profits payments with an attractive floating rate of 6Month Kibor plus 200bps. The principle will be redeemed in three step up/staggered semi-annual installments starting from 12th month such that minimum 20% principal to be redeemed in first two installments and remaining 80% to be paid in a balloon payment at maturity.
Furthermore, the transaction will be secured by Joint Pari-Passu charge with 10% risk margin over the present and future current assets (stock and receivable) of the Company.
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