Pakistan’s $1 billion sukuk offering
was its first shariah-compliant deal since 2005. It signals
that Muslim-majority countries will actively rely on Islamic
finance markets for at least part of their fundraising going
The sovereign’s five-year sukuk
closely follows its
$2 billion sovereign bond sold in April – its
first foray into the foreign debt markets after a seven-year
hiatus. But investors have anticipated a sukuk due to
its strong domestic Islamic finance market.
It demonstrates that the global Islamic finance markets have
developed to the point that Muslim-majority countries can rely
on it for their annual fundraising plans.
"When raising money internationally, countries such as
Pakistan look at raising money both in sukuk and in
conventional debt, which shows that sukuk are now a
significant part of the overall funding strategy for
sovereigns, banks and corporates,"said Farmida Bi of Norton
Pakistan sold its...