Islamic Finance News, Malaysia awards “Pakistan Deal of the Year” and “Most innovative Deal of the Year” to the Long Term Sukuk structured & led by Meezan Bank and Pakistan Kuwait Investment Company (Pvt) Limited for Enertech Water Private Limited

February 8th, 2022

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, 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 PKR 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 60 km 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 shortlisted 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 shortlisted the Long-Term Project Finance Facility of PKR 25.5 Bn for Enertech under the category of ‘Project and Infrastructure Finance Deal of the Year’ globally. The Meezan Bank and Pak Kuwait Investment Company (Pvt) Ltd led consortium inked the project finance facility agreements for the water supply and storage project in November, 2021, Karachi. This is the largest public–private partnership financing facility raised for the Government of Sindh.

Enertech is a fully owned subsidiary of National Technology and Enterprise Company, which in turn is a fully owned subsidiary of Kuwait Investment Authority. The project constitutes total infrastructure investment of approximately USD 180 Million generating economic activity in the country and would enable development and uplifting of Thar, Sindh. The successful implementation of the Project is also expected to motivate other foreign investors to explore the infrastructure sector of Pakistan especially under public- private partnership mode.

About Pak Kuwait Investment Company

Pakistan Kuwait Investment Company (Private) Limited (PKIC) is Pakistan’s leading Development Financial Institution (DFI) engaged in investment and development banking activities in Pakistan. PKIC was established as a joint venture between the Governments of Pakistan and Kuwait in 1979.

PKIC as a development financial institution has played a pivotal role in promoting industrial activity, by way of equity and debt investments. Since inception it has participated in innovative, economically viable and technically feasible projects with an aim to promote economic activity and support infrastructure development. PKIC has been accredited with many successful investments including the establishment of Meezan Bank in which it presently holds thirty percent shareholding.

The VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company) has maintained long term and short-term entity ratings of Pakistan Kuwait Investment Company (Pvt) Limited at ‘AAA’ and ‘A1+’ (A One plus), respectively. Further, VIS Credit Rating Company Limited has upgraded Corporate Governance Rating of Pakistan Kuwait Investment Company (Private) Limited from ‘CGR 9’ to ‘CGR 9+’. This rating reflects a ‘Very High Level of Corporate Governance’.

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About Enertech

Enertech Water Private Limited is a project company incorporated by Enertech Holding Company, which is a wholly owned subsidiary of National Technology and Enterprise Company, which in turn is a fully owned subsidiary of Kuwait Investment Authority. Enertech signed a Concession Agreement with the Government of Sindh under Public-Private Partnership mode to build, construct and operate a water processing facility for supply of water to Thar, Sindh. This project is expected to strengthen the relationship between Kuwait and Pakistan and further encourage investment from Kuwait.