Dubai – Mubasher: Dubai Islamic Bank (DIB) has completed a $1 billion syndicated term-finance facility for Pakistan, arranged in collaboration with a consortium of regional and international financial institutions, according to a press release.
The five-year facility is partially guaranteed by a policy-based guarantee (PBG) from the Asian Development Bank (ADB), marking the first PBG transaction of its kind undertaken by ADB for the country.
The transaction, structured as an AAOIFI-compliant Commodity Murabaha, accounts for nearly 89% of the total facility, which reflects the growing demand for Shariah-based financing. It supports Pakistan’s strategic objective of expanding Islamic finance.
DIB acted as the sole Islamic global coordinator and alongside Standard Chartered also served as the joint mandated lead arranger and bookrunner.
Other leading Islamic banks from the region included Abu Dhabi Islamic Bank, Ajman Bank and Sharjah Islamic Bank.
Minister of Finance for Pakistan, Muhammad Aurangzeb, stated that: “This landmark financing arrangement not only underscores the strong confidence of regional and international financial institutions in Pakistan’s economic reform trajectory, but also marks an important step in expanding our access to innovative and Shariah-compliant funding solutions.”
“We deeply value the role of partners like DIB and ADB in supporting our efforts to ensure macroeconomic stability and sustainable growth,” Aurangzeb continued.
Adnan Chilwan, Group CEO of DIB, commented: “DIB is delighted to have re-introduced Pakistan’s credit to the Islamic term financing market after a hiatus of over two years through an innovative structure. We are confident this will pave the way for the Government to access broader pools of Sharia-compliant liquidity in the near future.”
For Pakistan’s government, the transaction marks a strategic re-engagement with Middle East capital markets after more than two years, demonstrating growing investor trust and a renewed appetite for 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 advancing the global adoption of Islamic finance practices in sovereign funding.
In May, DIB signed a $150 million Murabaha financing agreement with Turkcell to expand investments in digital infrastructure.
