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K-Electric to raise Rs22b ?via sukuk

June 27, 2014

Karachi-based utility K-Electric plans to raise as much as Rs22 billion ($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 Rs6 billion 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 Rs1 billion from retail sukuk, part of a Rs4 billion programme set up earlier this year.

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Source: Khaleej Times (United Arab Emirates)

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