(Refiles to say, in headline, the issuance is in rupees, not converted amount in dollar)
By Bernardo Vizcaino
June 26 (Reuters) - Karachi-based utility K-Electric plans to raise as much as 22 billion rupees ($223.1 million) through Islamic bonds to refinance existing debt, the latest transaction in Pakistan’s reviving Islamic debt capital market.
The sukuk, which still requires regulatory approval, would help refinance debt and extend the maturity profile of K-Electric’s liabilities, the company said in a bourse filing.
In February, the utility raised 6 billion rupees though a three-tranche sukuk, investment certificates which follow religious principles such as a ban on interest and gambling.
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.
Earlier this month, conglomerate Engro Corp raised 1 billion rupees from retail sukuk, part of a 4 billion rupee programme set up earlier this year.
Pakistan’s central bank has joined the action as well, this week issuing 49.5 billion rupees via sukuk, injecting a much-needed liquidity management tool for the domestic Islamic banking industry. ($1 = 98.6050 Pakistani rupees) (Editing by Anand Basu)