KARACHI: Pakistani fintech firm ‘ABHI’ has issued Islamic bonds worth Rs2 billion ($7.1 million), it said on Friday, becoming the first financial company in the Middle East, North Africa, Afghanistan and Pakistan (MENAP) region to achieve the feat.
In a first for a non-banking financial company (NBFC) in Pakistan, the Pakistan Credit Rating Agency (PACRA) had assigned ABHI a long-term instrument rating of ‘AA’ and a short-term rating of ‘A1+’ in 2022. The ratings enabled ABHI to issue the Islamic bonds.
The fintech firm said the bond’s issuance was a “significant milestone” for both Abhi and the region, adding the demand for the Sukuk Islamic bond exceeded expectations and the firm’s subscriptions reached twice the anticipated amount due to its strong credit ratings and profitability.
“We are honored to have the support of PACRA and all the investors to launch this first-of-a-kind Sukuk. This is a testament to our team’s hard work and dedication, and our commitment to supporting businesses and their employees in Pakistan,” Omair Ansari, CEO and co-founder of ABHI, said in a statement.
“With this new funding, we can help ease the financial burden on struggling companies and provide much-needed relief through working capital financing during these challenging times.”
Sukuk is a financial instrument that is structured in a way ensuring Shariah compliance. This makes the bond attractive to investors who want to support businesses aligned with their Islamic values.
The successful issuance of Sukuk represents a new era of financial innovation in the country and is expected to have a positive impact on the economy, according to the Pakistani fintech firm.
The bond issuance immediately follows ABHI’s qualification for the international selection panel (ISP) by Endeavor, a high-impact entrepreneur movement which works to sustain economic growth by selecting, mentoring, and accelerating entrepreneurs worldwide, and its selection by Abu Dhabi-based global tech ecosystem Hub71 to boost expansion into the Middle East.
