High-Yield Sukuk Faces Test as Pakistan Readies: Islamic Finance
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A shortage of global sukuk will probably help cut borrowing costs on Pakistan’s first Islamic bonds since 2005, boosting a government besieged by opposition street protests.
The government plans to offer $1 billion of the notes, Secretary of Finance Waqar Masood Khan said in an Aug. 5 interview, with the sale scheduled for the first week of September. Assuming it’s a five-year maturity, the coupon rate will probably be 5.75 percent to 6.25 percent, according to Union Investment Privatfonds GmbH and Shajar Capital Pakistan Pvt. The nation paid 7.25 percent for 2019 non-Islamic dollar debt in April.