UAE-based Ajman Bank and Commercial Bank of Dubai have successfully concluded Pakistan's $350-million Murabaha syndicated financing.
Both Ajman Bank PJSC and Commercial Bank of Dubai PSC acted as Initial Mandated Lead Arrangers and Bookrunners on the facility for the Islamic Republic of Pakistan acting through Ministry of Finance (MoF), read a press statement from Ajman Bank.
The Islamic Syndication Facility was originally mandated for $200 million, but it managed to attract more than 75% oversubscription driven by strong demand from local, regional, and international investors. The transaction was fully subscribed by 12 banks. Ajman Bank PJSC also acted as Investment Agent on the facility.
“The Facility marks another successful syndication for MoF and reaffirms investor confidence in Pakistan’s potential, supported by ongoing structural adjustments and continued investments in the physical infrastructure of the country,” read the statement.
As per details, Gulf International Bank, The Arab Investment Company, Islamic Corporation for the Development of the Private Sector (ICD), United Arab Bank, Commercial Bank of Dubai, along Ajman Bank were the key investors from GCC that participated in the transaction.
“We are delighted by the success of this Murabaha financing deal in Pakistan in collaboration with the Commercial Bank of Dubai,” Mohamed Amiri, Chief Executive Officer, Ajman Bank, said.
Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, stated: “We are proud to collaborate with Ajman Bank on this landmark transaction for the Islamic Republic of Pakistan.”
Earlier this year, Pakistan tapped the international capital market for the sale of Eurobonds to build foreign exchange reserves. Accordingly, a multi-tranche transaction of 5-, 10- and 30-year Eurobonds was conducted and some $2.5 billion proceeds of the government against Eurobond issuance arrived in April this year.
In order to further build the country’s foreign exchange reserves, Pakistan decided to raise additional debt through the issuance of a Eurobond. Accordingly, some $300 million were raised through the sale of the five-year bond at 5.875 percent, $400 million against 10-year security paper at 7.125 percent, and an amount of $300 million through 30-year Eurobonds at 8.450 percent.