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.