ABHI, a fast-growing embedded finance platform in the MENAP region, has made history by successfully issuing Islamic bonds worth PKR 2 billion (US$7.1 million). This marks a significant milestone for ABHI and the region, as no other fintech in the area has ever accomplished this feat before.
ABHI, which was assigned a long-term instrument rating of ‘AA’ and a short-term rating of ‘A1+’ by PACRA in 2022 – a first for a Non-Banking Financial Company (NBFC) in Pakistan – was able to issue the Sukuk based on these ratings. The strong credit ratings, creditworthiness and profitability of ABHI attracted demand that exceeded expectations, with subscriptions reaching twice the anticipated amount.
Sukuk, or Islamic bonds, are financial instruments that comply with Islamic law and are structured to ensure Shariah compliance. This makes them attractive to investors who want to support businesses that align with their Islamic values. ABHI’s successful issuance of Sukuk is a significant achievement for the company and the broader financial industry in Pakistan. It represents a new era of financial innovation in the country and is expected to have a positive impact on the economy.
The bond issuance comes after ABHI qualified for the international selection panel (ISP) by Endeavor and was selected by Hub71 to boost expansion into the Middle East. ABHI is partnering with companies in the region to financially empower them and their employees.
Omair Ansari, CEO and co-founder of ABHI, expressed his gratitude, saying, “We are honored to have the support of PACRA and all the investors to launch this first-of-a-kind Sukuk. This is a testament to our team’s hard work and dedication, and our commitment to supporting businesses and their employees in Pakistan. With this new funding, we can help ease the financial burden on struggling companies and provide much-needed relief through working capital financing during these challenging times.”
ABHI’s successful issuance of Sukuk marks a significant milestone in the company’s journey and is expected to open new doors for the company in terms of financing and expansion, while also providing a viable option for Islamic investors seeking to invest in Shariah-compliant financial instruments.