KHALEEJ TIMES, Thursday, Jul 29, 2021 | Zul Hijjah 19, 1442
Murabaha: UAE banks raise $350 million for Pakistan government
Emirates:
Ajman Bank and Commercial Bank of Dubai have raised $350 million (Dh1.28
billion) in Murabaha syndicated financing for the government of Pakistan.
The two UAE banks acted as mandated lead arrangers and book-runners for the
facility on behalf of Pakistan’s Ministry of Finance. The Shariah-compliant
Ajman Bank also acted as an investment agent for the facility.
Originally mandated to raise $200 million, the syndication facility was
oversubscribed more than 75 per cent, driven by strong demand from local,
regional and international investors. The transaction was fully subscribed by 12
banks, said a press statement issued on Wednesday.
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.
Recently, Pakistan Cabinet approved the launch of Eurobond and sukuk to generate
$3.5 billion during the current fiscal year. Islamabad aims to go for maximum
fundraising due to low interest rates and the strong appetite of international
investors.
According to the press statement, the other financial institution from the GCC
that participated in the transaction include Gulf International Bank, The Arab
Investment Company, Islamic Corporation for the Development of the Private
Sector (ICD) and United Arab Bank.
“The phenomenal accomplishment endorses our reputation and distinguished
position regionally and internationally. We constantly strive to strengthen and
diversify our financial resources through strategic investments in developing
economies while adapting to the current economic situation in the world markets.
This Murabaha financing offers institutional investors the opportunity to
participate in our success,” said Mohamed Amiri, CEO of Ajman Bank.
“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,” said Dr Bernd van Linder,
CEO of Commercial Bank of Dubai.