With the formal listing of Islamic Rupiya Sukuk of Engro Corporation Limited at the stock market here on Monday, it was announced to give the highest rate of return in three and five years tranches. The formal listing was initiated with the ringing of the Gong. Chief Executive Officer of Engro Corporation Limited Muhammad Ali Ansari rang the bell at a ceremony held inside the trading hall of the Karachi Stock Exchange. Senior people from financial industry, DMD Haroon Askari, MD Nadeem Naqvi and other members of the stock market were also present on the occasion.
Talking to Business Recorder, officials of the Engro said that the proposed sukuk would be secured and will be offered in two tenors - a three-year with a 13 percent profit rate and a five-year tranche with a 13.5 percent profit rate. They further said that neither any other instrument has ever declared this high rate of return, nor such a variety of options were offered. Our aim is to reach to the individual retail investor so that the benefit of channel-related cost could be reached directly to the investors. The other attractive part is that the investor could redeem it anytime, they explained.
Besides, the high rate of return, Engro's Sukuk is also backed by high credit ratings like its predecessor. The ratings are reflective of improved risk profile of the corporation on account of its holding of a diverse pool of companies and improved performance. They added that Engro Corporation has raised Rs 4billion ($40.9 million) through listed Sukuk (Islamic bonds). Islamic finance is expanding in Pakistan as a flurry of initiatives taken by regulators are aimed at developing the industry in the world's second most populous Muslim nation, they added.