Latest news with #AAOIFI-compliant
Business Recorder
09-07-2025
- Business
- Business Recorder
DIB arranges $1bn sovereign financing for Pakistan
Dubai Islamic Bank (DIB), the largest bank in the UAE, has finalised a syndicated term finance facility deal worth $1 billion with the Government of Pakistan. The facility was arranged in collaboration with a consortium of regional and international financial institutions, read a statement on Wednesday. The five-year facility is partially guaranteed by a Policy-Based Guarantee (PBG) from the Asian Development Bank (ADB) — marking the first PBG transaction of its kind undertaken by ADB for the country. The Islamic tranche, structured as an AAOIFI-compliant Commodity Murabaha, represents approximately 89% of the total facility, which reflects the growing demand for Shariah-based financing and supports Pakistan's strategic objective of expanding Islamic finance. As per the statement, DIB acted as the Sole Islamic Global Coordinator and, alongside Standard Chartered, also served as the Joint Mandated Lead Arranger and Bookrunner. China rolls over $3.4 billion of commercial loans to Pakistan, says source Other leading Islamic banks from the region included Abu Dhabi Islamic Bank, Ajman Bank and Sharjah Islamic Bank. 'This landmark financing arrangement not only underscores the strong confidence of regional and international financial institutions in Pakistan's economic reform trajectory, but also marks an important step in expanding our access to innovative and Shariah-compliant funding solutions,' said Minister of Finance, Muhammad Aurangzeb. Meanwhile, Dr Adnan Chilwan, Group Chief Executive Officer, DIB, commented: 'This transaction marks a key milestone in demonstrating how Sharia-compliant financing can be scaled effectively to meet sovereign objectives while upholding partnership and prudence. 'DIB is delighted to have reintroduced Pakistan's credit to the Islamic term financing market after a hiatus of over two years through an innovative structure. We are confident this will pave the way for the government to access broader pools of Sharia-compliant liquidity in the near future,' he said. The Islamic bank shared that the inclusion of an ADB Policy-Based Guarantee has played a key role in facilitating Pakistan's return to the international commercial market, while reflecting confidence in the country's ongoing fiscal reforms and macroeconomic resilience. 'For the Government of Pakistan, the transaction marks a strategic re-engagement with Middle East capital markets after more than two years, demonstrating growing investor trust and a renewed appetite for collaboration through ethical and cost-effective financing solutions,' it said.
Hi Dubai
09-07-2025
- Business
- Hi Dubai
Dubai Islamic Bank Leads $1 Billion Shariah-Compliant Facility for Pakistan
Dubai Islamic Bank (DIB) has successfully led a landmark $1 billion syndicated term-finance facility for the Government of Pakistan, marking a significant return to the international Islamic finance market after more than two years. Structured over five years and backed in part by a Policy-Based Guarantee (PBG) from the Asian Development Bank (ADB), the facility represents ADB's first-ever PBG transaction for Pakistan. This innovative financing package reflects growing global interest in Shariah-compliant solutions for sovereign funding. Nearly 89 percent of the transaction was structured as an AAOIFI-compliant Commodity Murabaha, underscoring Pakistan's strategic push to expand Islamic finance. DIB served as the Sole Islamic Global Coordinator and, along with Standard Chartered, acted as Joint Mandated Lead Arranger and Bookrunner. Regional Islamic banks including Abu Dhabi Islamic Bank, Ajman Bank, and Sharjah Islamic Bank also participated. Pakistan's Finance Minister, Muhammad Aurangzeb, called the deal a vote of confidence from global markets, noting it aligns with the country's reform agenda and its pursuit of sustainable, Islamic-based funding options. DIB Group CEO Dr. Adnan Chilwan said the transaction reflects how values-driven finance can support national development goals, enabling Pakistan to access broader Shariah-compliant liquidity pools. The facility is seen as a pivotal step for both Pakistan's fiscal strategy and the broader growth of sovereign Islamic finance, combining regional collaboration with ethical and resilient financial structuring. News Source: Emirates News Agency
Gulf Today
08-07-2025
- Business
- Gulf Today
DIB Arranges $1 billion sovereign financing for Pakistan
DIB, the world's first Islamic bank and the largest in the UAE, has announced the successful completion of a landmark $1 billion syndicated term-finance facility for the Government of Pakistan, arranged in collaboration with a consortium of regional and international financial institutions. The five-year facility is an innovative transaction, partially guaranteed by a Policy-Based Guarantee (PBG) from the Asian Development Bank (ADB) — marking the first PBG transaction of its kind undertaken by ADB for the country. The Islamic tranche, structured as an AAOIFI-compliant Commodity Murabaha, represents approximately 89% of the total facility which reflects the growing demand for Shariah-based financing and supports Pakistan's strategic objective of expanding Islamic finance. DIB acted as the Sole Islamic Global Coordinator and alongside Standard Chartered also served as the Joint Mandated Lead Arranger and Bookrunner. Other leading Islamic banks from the region included Abu Dhabi Islamic Bank, Ajman Bank and Sharjah Islamic Bank. Minister of Finance, Government of Pakistan Muhammad Aurangzeb, stated that: 'This landmark financing arrangement not only underscores the strong confidence of regional and international financial institutions in Pakistan's economic reform trajectory, but also marks an important step in expanding our access to innovative and Shariah-compliant funding solutions. We deeply value the role of partners like DIB and ADB in supporting our efforts to ensure macroeconomic stability and sustainable growth.'
