KARACHI, May 23: The Abraj-led Karachi Electric Supply Company on Wednesday announced the launch of Rs2 billion AZM TFCs from May 25, which is Pakistan’s first ever utility sector retail bond issue.

The KESC AZM Certificate issue is the most flexible TFC issue in the country, available in maturities of 13 months (KESC AZM TFC 1), three years (KESC AZM TFC 2) and five years (KESC AZM TFC 3), claimed the KESC spokesperson.

He said that coupon/profit rates per annum are 13.00pc p.a. payable monthly for the 13 month issue, 14.75pc p.a. payable quarterly for the 3 years issue and 15.50pc p.a. payable quarterly for the 5 years issue. The total face value of the issue is Rs2,000 million including a green shoe option of Rs1,000 million.

Total amount offered is Rs300 million, Rs1,200 million and Rs500 million for 13 months, 3 years and 5 years issue respectively, he added. Minimum investment amount has been fixed at Rs10,000 in order to allow for broad based participation in the venture.

Principal repayment of the investment would be available at maturity.