Pakistan raises $1b through Sukuk bonds

[A.M.]

6.75 % rate of return...wooow
what pakistan has mortgage for this ?

The raise in April was worst but 1) we have to meet IMF demands so that we continue to get the future tranches and 2) the rates have to be attractive enough that foreign players will invest in us. Raising money won't be cheap for many years to come.

From April
"The $1 billion has been raised for five-year at a fixed rate of 7.25%, which is 5.58 % over and above the benchmark five-year US Treasury rate. The rest of the $1 billion was generated through 10-year bonds at a fixed rate of 8.25%, which is 5.56% above the corresponding 10-year US Treasury benchmark rate."

 

[VCheng]

i read somwhere that in the recent months,it is set to increase.

Real results matter more than claims or propaganda. Always.

 

[Nitin Goyal]

The raise in April was worst but 1) we have to meet IMF demands so that we continue to get the future tranches and 2) the rates have to be attractive enough that foreign players will invest in us. Raising money won't be cheap for many years to come.

From April
"The $1 billion has been raised for five-year at a fixed rate of 7.25%, which is 5.58 % over and above the benchmark five-year US Treasury rate. The rest of the $1 billion was generated through 10-year bonds at a fixed rate of 8.25%, which is 5.56% above the corresponding 10-year US Treasury benchmark rate."

it is still very high. thanks to the collateral security you are providing.

 

[A.M.]

Patience young padawan

Real results matter more than claims or propaganda. Always.

I can tell you're a glass half empty type of a guy.

 

[VCheng]

Patience young padawan


I can tell you're a glass half empty type of a guy.

A glass is always full. It is only the ratio of air to water that varies.

 

[kbd-raaf]

Hooolyyy farrk. That rate of return. Somebody sign me up.

 

[flameboard]

Very bad indeed. If you can't pay the bonds back in the future it will devastate Pakistan!

 

[farhan_9909]

Real results matter more than claims or propaganda. Always.

sahi hai

 

[VCheng]

sahi hai

Of course. One should not see more debt as any sort of positive step, like these bonds.

 

[farhan_9909]

Of course. One should not see more debt as any sort of positive step, like these bonds.

I am in favour of them,as economy is the only part this govt is slightly sincere with.

 

[VCheng]

I am in favour of them,as economy is the only part this govt is slightly sincere with.

I hope this government can put them to good use instead of leaving them just as a legacy burden for the next.

 

[SBD-3]

So what happens when these bonds and their returns become due?

Money of this sukkok will be kept like an investment. Though reinvestment of this money will likely fetch far less rate but the money will be treated like IMF's SBA which is used more of a confidence booster than a debt and returned back on the due date.

 

[SBD-3]

Very bad indeed. If you can't pay the bonds back in the future it will devastate Pakistan!

The thing is if Imran comes to power, he will be in a tight spot. Having publically claimed not to honor any debt obligations of Nawaz regime

 

[SBD-3]

Hooolyyy farrk. That rate of return. Somebody sign me up.

Pakistan is junk rated. Not a AAA like US, Germany and UK

 

[VCheng]

Money of this sukkok will be kept like an investment. Though reinvestment of this money will likely fetch far less rate but the money will be treated like IMF's SBA which is used more of a confidence booster than a debt and returned back on the due date.

That is the hope. What will be the reality remains to be seen.