Pakistan’s Finance Ministry has secured US$ 350 million in a Murabahah-centered syndicated investment offering led by Ajman Bank and the Commercial Bank of Dubai (CBD) in the United Arab Emirates, reported Islamic Finance News.
The specialized lending facility was approved and joined in principle by 12 banks from the Gulf Cooperation Council, including the Gulf International Bank, United Arab Bank, Islamic Corporation for the Development of the Private Sector, and the Arab Investment Company.
The underlined investment under the Murabahah-based financing structure is a show in testament for international business entities who are inclined towards extending their capital to Pakistan in exchange for profit based on Shariah-compliant regulations. In this regard, the CEO of CBD, Dr. Bernd van Linder, remarked,
This achievement is a prime example of our focus on providing financial solutions for cross-border counterparties and will provide substantial benefits to both the issuer and the institutional investor.
While the Islamic financing facility was priced at $200 million in the beginning, subscription upsized by over 75 percent after renewed demand from local, regional, and international investors.
Lately, the government of Pakistan has been on the lookout for overseas investment channels, particularly from the Islamic credit line, to enhance its capital base.
The aforesaid development reaffirms the cross-border “investor confidence in Pakistan’s potential, supported by ongoing structural adjustments and continued investments in the physical infrastructure of the country.”