Reuters logo
Pakistan's Engro Corp plans two-tranche listed sukuk
April 24, 2014 / 6:11 AM / 3 years ago

Pakistan's Engro Corp plans two-tranche listed sukuk

April 24 (Reuters) - Pakistani conglomerate Engro Corp , a former unit of Exxon Mobil Corp, 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, 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.

$1 = 97.8250 Pakistani rupees Editing by Andrew Torchia

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below