Latest news with #AAOIFI
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
Pakistan signs $1 bn syndicated financing deal for 5 years amid crisis
Pakistan signed a five-year long-term syndicated financing facility for $1 billion, indicating strong support from leading financiers amid the country's ongoing economic crisis. The Dubai Islamic Bank acted as the Sole Islamic Global Coordinator while Standard Chartered Bank is the Mandated Lead Arranger and Book-runners, a finance ministry statement said on Wednesday. Other financiers include Abu Dhabi Islamic Bank as the Mandated Lead Arranger and Sharjah Islamic Bank, Ajman Bank and HBL as Arrangers, it said. The Ministry of Finance has signed a syndicated term finance facility of $1,000 million partially guaranteed by a policy-based guarantee of the ADB (Asian Development Bank) programme Improved Resource Mobilisation and Utilisation Reform', said the statement. The facility is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region. This is a five-year multi-tranche facility including both Islamic and conventional tranches, it said. The ministry said the Islamic facility was structured to be fully compliant with AAOIFI standards, accounting for 89 per cent of the total financing amount, with the remaining 11 per cent from conventional financing. AAOIFI standards are a set of guidelines developed by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and aim to ensure that Islamic finance practices adhere to Sharia principles and provide a framework for consistent and reliable financial reporting. The transaction was also the first facility supported by ADB's policy-based guarantee linked to policy reform measures undertaken by an ADB member country, i.e Pakistan, it read. It further said the ADB programme was designed to support Pakistan in building long-term fiscal resilience and stability and encouraged Pakistan's re-entry into international commercial markets, with significant interest from Middle Eastern banks. The ministry said the government successfully entered the Middle Eastern financial market after nearly two and a half years, indicating the renewed trust of the market in the fiscal stability and the overall improvement in the macroeconomic indicators of Pakistan. This transaction also marks the beginning of a new partnership of the Government of Pakistan with Middle Eastern banks, it added. Meanwhile, Khurram Schehzad, adviser to the finance minister, said on X: Pakistan secures USD 1 billion landmark financing with ADB-backed guarantee and strong Middle Eastern banks' support. Earlier this month, the Philippines-based bank approved a USD 800 million programme to strengthen fiscal sustainability and improve public financial management in Pakistan. Pakistan narrowly avoided default in 2023-24 with the help of the International Monetary Fund, but worked to stabilise its economy with good results during the last year. In the first 11 months of the current fiscal year ending on June 30, it showed a USD 1.8 billion current account surplus, which has won the confidence of the lenders.
The Hindu
3 days ago
- Business
- The Hindu
Pakistan signs five-year syndicate financing facility for $1 billion
Pakistan signed a five-year long-term syndicated financing facility for $1 billion, indicating strong support from leading financiers amid the country's ongoing economic crisis. 'The Dubai Islamic Bank acted as the Sole Islamic Global Coordinator while Standard Chartered Bank is the Mandated Lead Arranger and Book-runners,' a Finance Ministry statement said on Wednesday (June 18, 2025.) IMF supports Pakistan PM's decisive actions for betterment of economy 'Other financiers include Abu Dhabi Islamic Bank as the Mandated Lead Arranger and Sharjah Islamic Bank, Ajman Bank and HBL as Arrangers,' it said. 'The Ministry of Finance has signed a syndicated term finance facility of $1,000 million partially guaranteed by a policy-based guarantee of the Asian Development Bank (ADB) programme 'Improved Resource Mobilisation and Utilisation Reform',' said the statement. 'The facility is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region. This is a five-year multi-tranche facility including both Islamic and conventional tranches,' it said. The Ministry said the Islamic facility was structured to be fully compliant with AAOIFI standards, accounting for 89% of the total financing amount, with the remaining 11% from conventional financing. AAOIFI standards are a set of guidelines developed by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and aim to ensure that Islamic finance practices adhere to Sharia principles and provide a framework for consistent and reliable financial reporting. 'The transaction was also the first facility supported by ADB's policy-based guarantee linked to policy reform measures undertaken by an ADB member country, i.e Pakistan,' it read. It further said the ADB programme was designed to support Pakistan in building long-term fiscal resilience and stability and encouraged Pakistan's re-entry into international commercial markets, with significant interest from Middle Eastern banks. The Ministry said the government successfully entered the Middle Eastern financial market after nearly two and a half years, indicating 'the renewed trust of the market in the fiscal stability and the overall improvement in the macroeconomic indicators of Pakistan.' Pakistan shuts border with Iran as Tehran trades strikes with Israel 'This transaction also marks the beginning of a new partnership of the Government of Pakistan with Middle Eastern banks,' it added. Meanwhile, Khurram Schehzad, advisor to the Finance Minister, said on X: 'Pakistan secures $1 billion landmark financing with ADB-backed guarantee and strong Middle Eastern banks' support.' Earlier this month, the Philippines-based bank approved a $800 million programme to strengthen fiscal sustainability and improve public financial management in Pakistan. Pakistan narrowly avoided default in 2023-24 with the help of the International Monetary Fund, but worked to stabilise its economy with good results during the last year. In the first 11 months of the current fiscal year ending on June 30, it showed a $1.8 billion current account surplus, which has won the confidence of the lenders.
1737100823-0%2Fsidra--(7)1737100823-0.png&w=3840&q=100)
Express Tribune
3 days ago
- Business
- Express Tribune
Pakistan signs '$1b' loan facility
The Ministry of Finance signed a five-year long-term financing facility for $1 billion, the government said in a statement on Wednesday. The financing is led by Dubai Islamic Bank and Standard Chartered, and the Islamic tranche forms 89% of the loan facility, according to the statement. "The Ministry of Finance has signed a syndicated term finance facility of $1,000 million partially guaranteed by a Policy-Based Guarantee of the ADB Programme 'Improved Resource Mobilisation & Utilisation Reform'," according to a press release. "The facility is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region. This is a five-year multi-tranche facility including both Islamic and conventional tranches," it said. The finance ministry said that the Islamic facility was structured to be fully compliant with AAOIFI standards, and accounts for 89 per cent of the total financing amount, and the remaining 11pc was from conventional financing. It added, "The transaction was also the first facility supported by ADB's Policy-Based Guarantee linked to policy reform measures undertaken by an ADB Member Country, i.e Pakistan." "The ADB programme is designed to support Pakistan to build long-term fiscal resilience and stability and has supported Pakistan's re-entry into international commercial markets, with significant interest from Middle Eastern Banks," the press release read. Meanwhile, the ministry announced that it successfully raised over Rs1.2 trillion through a major auction of government bonds held on Wednesday. This includes the launch of a new 15-year Zero Coupon Bond, the first of its kind in Pakistan, which received strong demand from investors and raised over Rs47 billion. This new bond does not pay interest every year. Instead, investors receive a lump sum at the end of 15 years. This helps the government reduce short-term repayments and plan finances better. The strong response shows that investors are confident in Pakistan's economy and reforms. This move is part of the government's broader strategy to reduce borrowing risks, extend the repayment period of debt, and promote Islamic and long-term financial products. Yields on other government bonds also dropped, indicating optimism in financial markets about falling inflation and lower interest rates in the future. Pakistan's debt is now becoming more stable. The average repayment period of domestic debt has increased from 2.7 years last year to 3.75 years now, reducing the pressure to repay loans quickly. Moreover, more pension funds and insurance companiesrather than just banksare now investing in government bonds. This helps spread financial risk and deepen the local investor base. Finance Minister Senator Muhammad Aurangzeb said: "This is a major step forward in making Pakistan's financial system stronger and more resilient. We are introducing new, smart ways of borrowing that reduce risk and give investors more options. Our aim is to manage public debt responsibly, promote Islamic finance, and attract more long-term investment to support the country's economic growth." The Ministry of Finance is also working on more products to allow ordinary citizens to invest in government bonds, especially Islamic ones, to encourage savings and financial inclusion. Despite global uncertainties, today's auction shows that Pakistan's economy is gaining investor trust and moving in the right direction. With additional input from Irshad Ansari
Business Recorder
3 days ago
- Business
- Business Recorder
MoF signs 1bn loan facility backed by ADB guarantee
ISLAMABAD: The Ministry of Finance has signed a syndicated term finance facility of $1 billion partially guaranteed by a policy based guarantee of the Asian Development Bank (ADB)'s Programme 'Improved Resource Mobilization & Utilisation Reform'. An official statement by the Finance Ministry stated that Dubai Islamic Bank acted as the sole Islamic global coordinator while Standard Chartered Bank acted as the mandated lead arranger and book runners. Other financiers include Abu Dhabi Islamic Bank as the mandated lead arranger and Sharjah Islamic Bank, Ajman Bank and HBL as arrangers. The facility is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region. ADB approves $800m financing for Pakistan This is a 5-year multi-tranche facility including both Islamic and conventional tranches. The Islamic facility was structured to be fully compliant with AAOIFI standards, and accounts for 89 per cent of the total financing amount. The remaining 11 per cent is from conventional financing. The transaction is also the first facility supported by ADB's Policy-Based Guarantee linked to policy reform measures undertaken by an ADB Member Country, i.e. Pakistan. The ADB Program is designed to support Pakistan to build long-term fiscal resilience and stability and has supported Pakistan's re-entry into international commercial markets, with significant interest from Middle Eastern Banks. Government of Pakistan has entered into the Middle Eastern financial market after nearly two and a half years, success of which indicates the renewed trust of the market in the fiscal stability and the overall improvement in the macroeconomic indicators of Pakistan. This transaction also marks the beginning of new partnership of Government of Pakistan with Middle Eastern banks, the Ministry added. Federal Minister for Finance Muhammad Aurangzeb recently stated that they have gone back to the commercial market in this fiscal year and are in the process of syndicating around $2 billion of commercial borrowing and expecting to shore up reveres from the current around $11-12 billion to $14 billion by end of the current fiscal year. Advisor to Finance Minister Khurram Shahzad, took to X formerly Twitter, and stated that Pakistan signed landmark financing deal with Middle Eastern banks backed by ADB - back into global markets after 2.5 years. Pakistan secures $1 billion landmark financing with ADB-backed guarantee and strong Middle Eastern banks' support. Government of Pakistan re-enters global markets with $1 billion syndicated financing. Pakistan attracts strong Middle East financing after 2.5 years. ADB-backed deal signals market confidence in Pakistan's economic reforms. This multi- tranche Islamic-conventional competitive financing deal with regional banks shows fiscal reform gains traction'. Copyright Business Recorder, 2025
Express Tribune
3 days ago
- Business
- Express Tribune
Pakistan secures $1b ADB-backed loan in return to Middle East markets
Listen to article Pakistan has secured a $1 billion syndicated term finance facility, partially guaranteed by the Asian Development Bank (ADB), marking its return to Middle Eastern financial markets after more than two years, the Ministry of Finance said on Tuesday. The facility is backed by the ADB's Policy-Based Guarantee under its 'Improved Resource Mobilization & Utilisation Reform' programme, aimed at supporting Pakistan's long-term fiscal resilience. Dubai Islamic Bank served as the sole Islamic global coordinator, while Standard Chartered Bank acted as mandated lead arranger and bookrunner. Other participating banks include Abu Dhabi Islamic Bank, Sharjah Islamic Bank, Ajman Bank, and HBL. "This landmark transaction underscores the growing confidence of leading regional financiers in Pakistan's fiscal and macroeconomic recovery," the ministry said in a statement. The $1 billion loan spans five years and is structured in multiple tranches. Notably, 89% of the facility is based on Islamic finance principles and fully complies with AAOIFI standards. The remaining 11% consists of conventional financing. It is also the first facility supported by ADB's Policy-Based Guarantee linked to specific policy reform measures undertaken by a member country. The ministry noted that the deal reflects renewed trust from the international financial community in Pakistan's economic management and opens the door to deeper partnerships with Middle Eastern banks. 'The success of this transaction marks Pakistan's re-entry into international commercial markets and sets the foundation for further engagement with regional financiers,' the statement added.
