Islamabad: Pakistan on Monday (January 24) released Sukuk Islamic bond worth USD 1 billion in the London Stock Exchange (LSE), news sources reported. The bond is issued for a term of seven years with a profit rate of 7.5 % payable semi-annually.
The issue date for the bond is January 31, 2022 and is the most expensive one to date. The government aims to create revenue for the domestic economy and to support National Highway Authority (NHA) projects with the revenue generated. Pakistan Global Sukuk Programme Company Limited (PGSPCL) will issue and manage the bonds. It was announced that Dubai Islamic Bank, Standard Chartered Bank, Credit Suisse, and Deutsche Bank AG will book and manage the bonds.
New-york-based Moody’s Investors Service and Fitch Ratings have assigned a ‘B-backed senior unsecured rating’ and a ‘B- rating respectively to the Sukuk certificates. During the current fiscal year, both rating agencies have assigned a total credit value of USD 3 billion to the international capital markets. It is worth noting that the most recent Sukuk bond was issued after a four-year hiatus. A Sukuk was issued in December 2017 for a duration of five years at a rate of 5.6 %.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
