DUBAI: With the aim to achieve $15 billion foreign reserves target by the end of December 2014, the government has started a road show in Dubai to woo investors in $500 million worth of Sukuk bonds.
Sources said that after Dubai, road shows will be held at London and Singapore Stock Exchange. Sources at the finance ministry have confirmed that four banks have been engaged as financial advisors for the process. The banks include, Deutsche Bank, Citi group, Standard Chartered and Dubai Islamic Bank. The government is offering five year bonds at an interest rate of 6.75% while $1 billion worth of ten year bonds will be offered at 7.75% interest rate.
The government plans to increase country’s foreign exchange reserves to $15 billion by December 31, 2014 through floating $500 million Sukuk bonds and receiving the fourth and fifth tranche amounting to $1.1 billion from the International Monetary Fund (IMF). Pakistan’s foreign currency reserves stood at $13.228 billion including $8.493 billion held by State Bank of Pakistan and $4.734 billion held by commercial banks.
Pakistan team is led by Minister for Finance Ishaq Dar who is accompanied by the Additional Secretary (External Finance).
