ABHI, a Pakistani fintech firm, has announced the successful issuance of Islamic bonds worth $7.1 million, becoming the first financial company in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region to do so. The non-banking financial company (NBFC) received a long-term instrument rating of ‘AA’ and a short-term rating of ‘A1+’ by the Pakistan Credit Rating Agency (PACRA) in 2022, which enabled it to issue the Sukuk Islamic bonds.
According to ABHI, the demand for the bonds exceeded expectations, with subscriptions reaching twice the anticipated amount due to the firm’s strong credit ratings and profitability. ABHI’s CEO and co-founder, Omair Ansari, said in a statement that the bond’s issuance was a “significant milestone” for both the firm and the region. He expressed gratitude to PACRA and investors for their support, stating that the funding would help ease the financial burden on struggling companies and provide much-needed relief through working capital financing.
Sukuk is a financial instrument structured to ensure compliance with Shariah law, which makes the bonds attractive to investors who want to support businesses aligned with their Islamic values. ABHI’s successful issuance of Sukuk marks a new era of financial innovation in Pakistan and is expected to have a positive impact on the economy, according to the fintech firm.
ABHI’s bond issuance comes after the firm’s qualification for the international selection panel (ISP) by Endeavor, a high-impact entrepreneur movement that works to sustain economic growth by selecting, mentoring, and accelerating entrepreneurs worldwide. The company was also selected by Abu Dhabi-based global tech ecosystem Hub71 to boost its expansion into the Middle East.
