Pakistan secures $1 billion financing facility with ADB-backed guarantee
Dubai Islamic Bank acted as the Sole Islamic Global Coordinator while Standard Chartered Bank acted as the Mandated Lead Arranger and Bookrunners.
Other financiers include Abu Dhabi Islamic Bank as the Mandated Lead Arranger and Sharjah Islamic Bank, Ajman Bank and HBL as Arrangers.
ADB approves $800m financing for Pakistan
'The facility is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region,' the Finance Division said.
As per details, this is a 5-year multi-tranche facility including both Islamic and conventional tranches. The Islamic facility was structured to be fully compliant with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards, and accounts for 89% of the total financing amount. The remaining 11% 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 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.'
ADB to scale up food security support to $40bn by 2030
Pakistan government 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', the Finance Division said.
'This transaction also marks the beginning of new partnership of Government of Pakistan with Middle Eastern banks.'
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