Summary Finance Minister Ishaq Dar made the announcement in a press conference in Islamabad.
ISLAMABAD (Web Desk) - Pakistan issued a $1 billion sukuk bond, returning to the international U.S. dollar sukuk market after a two-year absence.
This was announced by Finance Minister Ishaq Dar in a press conference in Islamabad today (Thursday).
Federal Minister Ishaq Dar said Pakistan successfully launched the sukuk bonds worth $1 billion after receiving foreign investors interest worth $2.4 billion which was almost five times higher than our target of $500 million.
Pakistan sold the bonds at 5.5 percent which is the lowest in the history of Pakistan as we never used to sell the bonds below 6 percent level, he said.
“We set an indicative price of 5.75 percent for the selling of the sukuk bonds, we faced several questions about the stiff condition at the LoC, but the response was overwhelming which showed that confidence of the foreign investors over the Pakistan economy”, Dar explained.
He said encouraging thing for Pakistan has been the recent acknowledgement from the Asian Development Bank, World Bank and IMF and above all Harvard University, all of them of the opinion that the economy of Pakistan to grow by on average above 5 percent per annum in coming years.
Ishaq Dar said that some 124 financial institutions shown interest while after finalization of selling of the bonds, 92 institutions bought sukuk while the break was 38 percent from the European Union, 27 percent from North America and 27 percent from Middle East and seven percent from Asia.
Ishaq Dar expressed hope that the country’s economy would grow by over 5 percent in the current fiscal year, while the reserves are at comfortable level.
The Finance Minister rejected the claim of a news website that Pakistan has to return the amount of $1.5 billion to Saudi Arabia.
“We don’t want to return any amount to our brotherly country. Pakistan Telecommunication Authority should block these kinds of websites for spreading false news,” he said.
Pakistan last raised $1 billion in the sukuk market in late 2014.
Pakistan’s economy grew 4.7 percent 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.
