DUBAI: The Ajman Bank and the Commercial Bank of Dubai have raised $350 million (Dh1.28 billion) in Murabaha syndicated financing for the government of Pakistan, Khaleej Times reported on Wednesday.

The two UAE banks acted as mandated lead arrangers and book-runners for the facility on behalf of Pakistan’s Ministry of Finance. The Shariah-compliant Ajman Bank also acted as an investment agent for the facility.

Originally mandated to raise $200 million, the syndication facility was oversubscribed more than 75 per cent, driven by strong demand from local, regional and international investors. The transaction was fully subscribed by 12 banks, a statement said.

The strong response from the investors affirms investors’ confidence in Pakistan’s potential, supported by the ongoing structural adjustments and continued investments in the physical infrastructure of the country.

Recently, the Federal Cabinet had approved the launch of Eurobond and Sukuk to generate $3.5 billion during the current fiscal year. Islamabad aims at going for maximum fundraising due to the low interest rates and the strong appetite of the international investors.

According to the statement, the other financial institutions from the GCC that participated in the transaction include Gulf International Bank, The Arab Investment Company, Islamic Corporation for the Development of the Private Sector (ICD) and the United Arab Bank.

“The phenomenal accomplishment endorses our reputation and distinguished position regionally and internationally. We constantly strive to strengthen and diversify our financial resources through strategic investments in developing economies, while adapting to the current economic situation in the world markets,” Mohamed Amiri, CEO of Ajman Bank, said.

“This Murabaha financing offers institutional investors an opportunity to participate in our success,” he added.

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