Pakistan’s Ministry of Finance has raised US$350 million in a Murabahah-based syndicated financing facility jointly led by Ajman Bank and Commercial Bank of Dubai (CBD), to support investments into the country’s infrastructure. NESSREEN TAMANO has the story.
The Islamic facility was originally priced at US$200 million and upsized after strong demand from local, regional and international investors yielded an oversubscription of over 75%.
The syndicated facility was fully subscribed by 12 banks at closing, with participants from the GCC including Gulf International Bank, The Arab Investment Company, Islamic Corporation for the Development of the Private Sector and United Arab Bank.
“The strong response from investors affirms investor confidence in Pakistan’s potential, supported by ongoing structural adjustments and continued investments in the physical infrastructure of the country,” a statement said.
Dr Bernd van Linder, CEO of CBD, also noted: “This achievement is a prime example of our focus on providing financing solutions for cross-border counterparties, and will provide substantial benefits to both the issuer and the institutional investors.”
The Pakistani government has been looking into different sources of funding, particularly from the Islamic debt market, to plug its budget deficit and boost revenue.