Islamic bank DIB has announced that it has finalised a USD 1 billion syndicated term-finance facility for the Government of Pakistan (GoP), arranged in partnership with a consortium of regional and international financial institutions.
The five-year facility is partially guaranteed by a Policy-Based Guarantee (PBG) from the Asian Development Bank (ADB), which marks one of the first PBG transactions of its kind undertaken by the latter for the country.
More details on the transaction
The Islamic tranche, structured as an AAOIFI-compliant Commodity Murabaha, accounts for approximately 89% of the total facility, reflecting the growing demand for Shariah-based financing and supporting Pakistan’s strategic plan to expand Islamic finance. As part of the syndicated term-finance facility for the Government of Pakistan, DIB served as the Sole Islamic Global Coordinator and, together with Standard Chartered, acted as the Joint Mandated Lead Arranger and Bookrunner. Other Islamic banks participating in the deal include Abu Dhabi Islamic Bank, Ajman Bank, and Sharjah Islamic Bank.
Furthermore, this facility supports the development of Islamic finance by combining the strengths of regional and international institutions within a Shariah-compliant framework. The inclusion of an ADB Policy-Based Guarantee has served as a cornerstone in enabling Pakistan’s return to the international commercial market, while also demonstrating confidence in the region’s ongoing fiscal reforms and macroeconomic resilience.
When it comes to the Government of Pakistan, the transaction marks a strategic re-engagement with Middle East capital markets after more than two years, highlighting increasing investor trust and a renewed interest in collaboration through ethical and cost-effective financing solutions. For participating institutions, the transaction offers an opportunity to support sustainable economic development across key emerging markets while also promoting the global adoption of Islamic finance practices in sovereign funding.
