ISLAMABAD, Oct 6 (APP): Federal Minister for Finance Senator Ishaq Dar Thursday said that Pakistan had successfully issued Sukuk Bonds
(Islamic Bonds) which would raise one billion dollars from international debt markets for Five years which would increase in the debt of the country.
Addressing a press conference, here at FBR the minister further said that the Pakistan has received offers worth 2.4 billion dollar from 90 institutional investors from across the globe and country has decided to accept offers worth one billion dollars at profit rate of 5.5%, which is lowest in the history of the country.
The minister informed that thr bonds were issued after applying the all due procedures and a five members team of ‘Joint Lead Managers’ (JLM) comprising reputed international financial organizations were also formed to conduct the process.
Two teams heading by Governor State Bank of Pakistan and Secretary Finance were also formed for organizing road shows to introducing the Sukuk
Bond in international markets, he added.
The minister said that roadshows were completed in close coordination
with the Joint Lead Managers comprising Standard Chartered Bank, Citibank, Deutsche Bank, Dubai Islamic Bank and Noor Bank.
The road shows were organized in Dubai, London, Boston and New York, which had received an overwhelming response from the international buyers due to economic gains achieved during last three years and reforms measures introduced by the government, he added.
The Sukuk Bonds, he said was over subscribed and bidding of US$ 2.4
billion were received from the potential investors, adding that it was decided to float only $ 1 billion.
Ishaq Dar said that JML has finalized the 90 institutions to take part in bidding process of the Sukuk Bond and it would not increase the foreign debt burden on the country.
The minister said that other objective of the issuance of the bond was the presence of the country in international bonds market and to promote and attract Foreign Direct Investments (FDI).
He said that issuance of the US $ 1 billion Sukuk bond would help decrease the total debt and the Fiscal deficit would also come down.
Ishaq Dar said that Pakistan has successfully completed International Monetary Fund (IMF) programme in September 30, adding that all international
institutions have also admitted the economic progress made by the country during last three years.
He said that Harvard has forecast average 5.4 percent GDP growth for Pakistan for 10 years, where Asian Development Bank at 5.8 percent and International Monetary Fund and World Bank has forecast at 5.8 percent.