Lahore: LSE Ventures Limited, a public limited company, has announced a new initiative to issue convertible debt securities in the form of Sukuk to raise capital for strategic investments. The board of directors approved the initiative on May 22, 2025, aiming to channel the proceeds into the revival and operations of Jamshoro Joint Venture Limited (JJVL).
LSE Ventures Limited, incorporated on July 18, 2022, is focused on making strategic and long-term investments in various companies. Its portfolio includes holdings in the National Clearing Company of Pakistan Limited, Central Depository Company of Pakistan Limited, and several other notable entities. The company operates with a principal business model of investing through equity, debentures, sukuks, and other securities.
The Sukuk issuance, priced at Rs. 30.00 per Sukuk, will offer a profit rate of the six-month KIBOR plus 400 basis points per annum, with a floor of 12.00% per annum. The securities are offered at a ratio of 38.976 Sukuk against every 100 ordinary shares held. The funds raised are intended to be invested in JJVL, Pakistan's largest private-sector gas processor, which has faced operational challenges due to prolonged inactivity.
According to information available from the Pakistan Stock Exchange (PSX), the proceeds will be utilized within two months of the issue date to support the operational reactivation of JJVL's facilities. JJVL's gas-processing facilities, located in Jamshoro, Sindh, have a total processing capacity of 345 million standard cubic feet per day (mmscfd). The investment aims to address operational execution risks and macroeconomic volatility, with fixed charges to be created on fixed assets to mitigate potential investment risks.
The Sukuk offering is backed by Dawood Equities Limited, which has arranged underwriting commitments of Rs. 2.10 billion. The instrument has been rated AA- (plim) by VIS Credit Rating Company Limited, reflecting a robust credit profile. LSE Ventures Limited aims to leverage this strong rating to attract investors, minimizing the risk of undersubscription.
With no material contingencies or commitments outstanding as of December 31, 2024, the offering is positioned to provide a lucrative opportunity for investors seeking exposure to Pakistan's growing gas processing industry. The initiative underscores LSE Ventures Limited's commitment to fostering strategic investments and enhancing shareholder value through targeted financial instruments.