Wednesday Jul 07, 2021
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.
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.
The finance minister will resume his duties from coming Monday.
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.