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Wednesday Jul 07 2021
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Pakistan offers another $1 billion bonds under Sukuk

Pakistan offers another $1 billion bonds under Sukuk

Pakistan launched $1 billion in international bonds under the Sukuk initiative on Tuesday, The News reported.

The subscription price of these Sukuk bonds amounts to $3 billion for five, 10, and 30 years.

The federal cabinet recently approved the launching of both the Eurobond and Sukuk bonds to generate 3.5 billion dollars during the current fiscal year. These bonds mature in 2027.

Pakistan accepts $300 million for five-year bonds at 5.875 percent. The 10-year bonds at 7.125 percent make 400 million dollars, while 300 million dollars are made from 30-year bonds at 8.450 percent.

Read more: Pakistan govt decides to mortgage airports, highways to issue Sukuk bonds

Last month, an anonymous source said that due to the appetite of the international market and the offered rates, the government will go for maximum-ranging bonds.

Meanwhile, Finance Minister Shaukat Tareen is taking a five-day leave after being invested in the budget-making and approval process.

The finance minister will resume his duties from coming Monday.

What are international bonds?

An international bond is a debt obligation that is issued in a country by a non-domestic entity. International bonds issued by the government help support governmental spending. Sukuk bonds are Sharia-compliant bonds used in Islamic finance.