Inside Financial Markets

PAKISTAN’S ENGRO CORP PLANS TWO-TRANCHE LISTED SUKUK – RTRS

engro rupiyaPAKISTAN’S ENGRO CORP PLANS TWO-TRANCHE LISTED SUKUK – RTRS

April 24 (Reuters) – Pakistani conglomerate Engro Corp EGCH.KA, a former unit of Exxon Mobil CorpXOM.N, plans to raise as much as 4 billion rupees ($40.9 million) through listed sukuk (Islamic bonds), Pakistan Credit Rating Agency Limited said.

The proposed sukuk would be secured and offered in two tenors: a three-year 3 billion rupee tranche with a 13 percent profit rate, and a five-year 1 billion rupee tranche with a 13.5 percent profit rate, the rating agency said.

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

Engro has issued sukuk before but on a much smaller scale; its fertiliser unit raised 2 million rupees through a six-month deal though a private placement in 2012. The company is involved in sectors including food, polymers, fertilisers and power generation.

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)

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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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)