Islamabad: Mughal Energy Company Limited announced plans to issue sukuks worth 2.5 billion rupees, after its board of directors approved amending the terms and structure of the issuance. The company disclosed this development to the Pakistan Stock Exchange (PSX) on Monday.
According to the notice, the sukuk will be offered to the company’s existing shareholders through a rights issue, with an embedded conversion option. This allows sukuk holders to convert their debt securities into common shares of the company.
The company plans to seek approval from its members as required under Section 83(1)(b) of the Companies Act, 2017, to facilitate the issuance of further capital. This approval is also required under the Issuance of Convertible Debt Securities by Rights Offer Regulations 2022.
An extraordinary general meeting of the company is scheduled to be held on 1 January 2025 to formalize the required approvals and proceed with the issuance.