Govt set to issue $1bn sukuk

govt-set-to-issue-1bn-sukuk

Govt set to issue $1bn sukuk ISLAMABAD: Pakistan will issue a $1 billion sukuk bond within hours, the finance ministry said on Wednesday, returning to the international US dollar sukuk market after a two-year absence.

The ministry said road shows in Dubai, London, Boston and New York scored “unprecedented interest”.

Pakistan’s economy grew 4.7 per cent in the last fiscal year, its fastest pace since 2008, rebounding from a series of crises in recent years, helped by low oil prices and the improved security situation.

The government has recently embarked on vast infrastructure spending to eradicate energy shortages and the country’s debt is rated B3 by Moody’s and B- by Standard & Poor’s.

“After the completion of the book-building process, the allocation and pricing of international sukuk 2016 is expected to be completed later tonight,” a ministry statement said, noting that the bonds would have a five-year maturity.

One Pakistan-based financial analyst said it was likely that Pakistan will also sell debt with a 10-year tenure, depending on the level of interest from investors.

The ministry said joint lead managers were Standard Chartered Bank, Citibank, Deutsche Bank, Dubai Islamic Bank and Noor Bank.

The settlement date for the bond is Oct 13, the ministry said. Pakistan last raised $1 billion in the sukuk market in late 2014.

According to a lead, Pakistan has set final guidance for a US dollar-denominated sukuk at 5.50pc–5.625pc, to price in range. That compares to initial price thoughts in the high 5pc area.

Source: http://www.dawn.com/news/1288244/govt-set-to-issue-1bn-sukuk

Leave a Comment