Pakistan has issued $1 billion worth of Islamic bonds with a seven-year maturity and a yield of 7.95%.

The last sukuk was launched four years earlier. Previously, five-year loans of the same class were issued with a yield of 6.8 percent in December 2014, 5.5 percent in October 2016 and 5.6 percent in December 2017.

Dubai Islamic Bank, Standard Chartered Bank, Credit Suisse and Deutsche Bank AG are the lead arrangers in this deal. The bond issue date is January 31, 2022.

Sukuk is streamed by the Government of Pakistan through Pakistan Global Sukuk Program Limited (PGSPCL), a wholly owned subsidiary of the Government of Pakistan. The Company is the issuer and custodian of the Sukuk, which are primarily established to participate in the Sukuk transaction.

The seven-year Islamic product, denominated in international dollars, was launched with security structure comprising of Motorways/Highways under National Highway Administration (NHA).

Moody’s and Fitch Ratings have also assigned same rating of ‘B-’ to Sukuk Issue. Pakistan has planned to raise $3 billion from international capital markets for the current financial year.

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