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Pakistan issues $1bn Islamic sukuk at 7.95% rate

25 Jan, 2022
An official of Finance Ministry on condition of anonymity confirmed that the Islamic bond has been issued. File photo
An official of Finance Ministry on condition of anonymity confirmed that the Islamic bond has been issued. File photo

Pakistan has issued $1 billion Islamic sukuk in the international market at 7.95 percent interest rate for a period of seven years.

An official of Finance Ministry on condition of anonymity confirmed that the Islamic bond has been issued; however, information with regard to subscription remains unclear. The inflow would boost the country’s foreign exchange reserves and help arrest the rupee slide.

The process of marketing and book-building the bond was started by joint lead managers — Dubai Islamic Bank, Standard Chartered Bank, Credit Suisse and Deutsche Bank.

The government decided to raise over $3 billion from the international market through issuance of Eurobond/international sukuk in the budget for the ongoing fiscal year.

This report was first published in Business Recorder on Jan 25, 2022.