KARACHI: The proceeds of $1 billion raised through the international sukuk issue, the first under the newly established Trust Certificate Issuance Programme, were received on Tuesday, announced the Ministry of Finance.

During the first 21 days of January, the SBP’s foreign exchange reserves declined by $1.4bn. While in the first seven months of the current fiscal year its forex holdings shrank by $3.88bn.

The ministry in a statement said the participants offered $2.7bn for the bonds but the government successfully raised $1bn sticking to its target.

“The transaction generated great interest as leading global investors from Asia, Middle East, Europe and the United States participated in the order book,” said the ministry.

An earlier announcement said the amount was raised at a high rate of 7.95pc on the international market with a seven-year maturity.

“The 7.95pc is not very high. At this time the rate is appropriate to our economy and global situation,” said Samiullah Tariq, head of research and development at Pak-Kuwait Investment Company. He said in 2017 the then government had raised $1bn through sukuk issue at 5.5pc but that was in accordance with the market conditions.

The ministry said the transactions’ success is a testimony to the investors’ confidence in the country’s economic revival and long-term stability and growth.

“The response was overwhelmingly strong and the orders book were oversubscribed (peaked at $2.7bn) consisting of orders from high-quality investors,” said the ministry, adding that after careful consideration, the government decided to raise $1bn.

It further added that the programme will allow Pakistan to tap the market at short notice. “The government intends to make full use of this program and become a regular issuer of Sukuk in the international capital markets,” said the ministry.

Published in Dawn, February 2nd, 2022

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Fleeting good news
03 Dec, 2022

Fleeting good news

THE last couple of days have seen some positive news. The Pakistan Bureau of Statistics reported that the nation’s...
Battle for spoils
03 Dec, 2022

Battle for spoils

THE spectacle playing out inside a London courtroom shines a light on the struggle for control of the assets of the...
CM Bizenjo’s complaint
03 Dec, 2022

CM Bizenjo’s complaint

BALOCHISTAN Chief Minister Mir Abdul Qudoos Bizenjo’s claim that his province is facing a financial crunch due to ...
Wayward ideology
02 Dec, 2022

Wayward ideology

Anyone who claims his legacy for themselves should not treat his words so whimsically.
Progressive stance
02 Dec, 2022

Progressive stance

THE timing of two encouraging developments in the fight against domestic violence in Pakistan could not have been...
China Covid protests
02 Dec, 2022

China Covid protests

PUBLIC protests are rare in China where the People’s Republic maintains order through a strict authoritarian code...