PAKISTAN’S ENGRO CORP ISSUES TWO-TRANCHE RETAIL SUKUK EGCH.CA KELE.KA – RTRS

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June 13 (Reuters) – Pakistani conglomerate Engro Corp EGCH.KA, a former unit of Exxon Mobil Corp XOM.N, has raised 1 billion rupees ($10 million) from an issue of Islamic bonds in the retail market, the company said in a regulatory filing.

The transaction is part of a 4 billion rupee programme set up earlier this year by Engro and a rare example of a retail offering of sukuk – investment certificates which follow religious principles such as a ban on interest and gambling.

Engro’s sukuk was sold in two tenors: a three-year 750 million rupee tranche with a 13 percent profit rate, and a five-year 250 million rupee tranche with a 13.5 percent profit rate.

It follows a retail sukuk by Karachi-based utility K-Electric KELE.KA, which tapped the market in February to raise 6 billion rupees through a three-tranche deal.

Islamic finance is expanding in Pakistan as a flurry of initiatives by regulators aims to develop the industry in the world’s second-most populous Muslim nation. (Full Story) (Full Story)
($1 = 98.3500 Pakistani rupees)

Sanie Khan

Sanie Khan holds a deep knowledge of the financial markets in Pakistan. Based in Karachi, he has over 20 years of hands-on management experience in financial technologies and managing operations in the financial sector. He was the General Manager at the Pakistan Stock Exchange (PSX) for 17 years. He along-with senior members of Exchange

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