Data News > Dubai Islamic Bank Completes $1 Billion Syndicated Term-Finance Facility for Pakistan

Dubai Islamic Bank Completes $1 Billion Syndicated Term-Finance Facility for Pakistan

By KlickAnalytics Data Insights  |   July 8, 2025 02:56PM ET

- Dubai Islamic Bank (DIB) finalizes a $1 billion syndicated term-finance facility for Pakistan in collaboration with regional and international financial institutions.
- The transaction includes a policy-based guarantee (PBG) from the Asian Development Bank (ADB), the first of its kind for Pakistan.
- DIB acts as the sole Islamic global coordinator, with other leading Islamic banks participating in the arrangement.

In a recent press release, Dubai Islamic Bank (DIB) announced the successful completion of a $1 billion syndicated term-finance facility for Pakistan, facilitated in partnership with a consortium of regional and international financial institutions. This landmark transaction marks a significant step towards expanding Islamic finance opportunities in Pakistan.

The five-year facility includes a policy-based guarantee (PBG) from the Asian Development Bank (ADB), establishing a new milestone for the bank in supporting Pakistan's economic reform trajectory. Structured as an AAOIFI-compliant Commodity Murabaha, the transaction highlights the increasing demand for Shariah-based financing solutions and reinforces Pakistan's strategic goal of promoting Islamic finance.

DIB, as the sole Islamic global coordinator, worked alongside Standard Chartered as the joint mandated lead arranger and bookrunner. Other prominent Islamic banks from the region, including Abu Dhabi Islamic Bank, Ajman Bank, and Sharjah Islamic Bank, also played integral roles in the financing arrangement. The participation of these institutions underscores the importance of collaboration in fostering sustainable economic development across emerging markets.

The $1 billion syndicated term-finance facility represents a strategic re-engagement for Pakistan with Middle East capital markets, showcasing investor confidence and renewed commitment to ethical and cost-effective financing solutions. This transaction not only supports Pakistan's economic growth but also advances the adoption of Islamic finance practices in sovereign funding, contributing to the global propagation of Shariah-compliant liquidity solutions.

By securing this innovative financing arrangement, Pakistan aims to enhance its position in the Islamic term financing market, marking a resurgence in its access to Shariah-compliant liquidity. The collaboration between DIB, ADB, and other financial institutions sets the stage for future partnerships in support of Pakistan's macroeconomic stability and sustainable development efforts.

In a dynamic global financial landscape, partnerships like the one between DIB, ADB, and Pakistan serve as a blueprint for sustainable economic growth and innovation in financing solutions. This transaction not only benefits Pakistan but also strengthens ties between regional and international players, fostering a spirit of collaboration towards shared economic prosperity.


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