Pakistan Secures $1 Billion Islamic Financing with DIB
Deal News | Jul 08, 2025 | Zawya
Dubai Islamic Bank (DIB) has successfully arranged a $1 billion syndicated financing facility for the Government of Pakistan, marking a significant milestone in Islamic finance. The five-year facility, partially guaranteed by an Asian Development Bank (ADB) Policy-Based Guarantee, is structured primarily as Shariah-compliant financing, with Islamic banks contributing 89% of the total facility. The transaction, executed in collaboration with international and regional financial institutions including Standard Chartered, Abu Dhabi Islamic Bank, Ajman Bank, and Sharjah Islamic Bank, underscores global confidence in Pakistan’s economic reform and Islamic finance landscape. The initiative seeks to enhance Pakistan's access to Islamic liquidity and facilitate its re-engagement with Middle Eastern capital markets. DIB's Group CEO, Dr. Adnan Chilwan, emphasized the transaction's role in advancing values-driven finance and supporting tangible economic outcomes, while Pakistan's Finance Minister, Mr. Muhammad Aurangzeb, highlighted the strategic importance of such financing in achieving macroeconomic stability and growth.
Sectors
- Islamic Finance
- Sovereign Finance
- Investment Banking
Geography
- Pakistan – The financing facility is for the Government of Pakistan, aimed at supporting its economic initiatives and reform agenda.
- United Arab Emirates – Dubai Islamic Bank, the primary entity structuring the financing, is based in the UAE, which plays a significant role in the transaction.
Industry
- Islamic Finance – This article focuses on the use of Shariah-compliant financial tools in a large financing deal for Pakistan, highlighting the role of Islamic finance in global markets.
- Sovereign Finance – The financing deal is a sovereign financing facility for the Government of Pakistan, designed to support national economic reforms and stability.
- Investment Banking – The involvement of multiple banks, including DIB and Standard Chartered, in arranging and structuring the facility highlights the investment banking activities related to M&A and financing.
Financials
- $1 billion – Total value of the five-year syndicated term-finance facility arranged for the Government of Pakistan.
- 89% – The percentage of the facility structured as an Islamic tranche, highlighting the focus on Shariah-compliant financing.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Dubai Islamic Bank (DIB) | Sole Islamic Global Coordinator and Joint Mandated Lead Arranger and Bookrunner | Companies | DIB is the world's first Islamic bank and the largest in the UAE, spearheading this landmark financing transaction. |
| Standard Chartered | Joint Mandated Lead Arranger and Bookrunner | Companies | An international banking and financial services company involved in the arrangement of this financing. |
| Government of Pakistan | Sovereign Beneficiary | Government | Receives the $1 billion facility to support economic reforms and stability. |
| Asian Development Bank (ADB) | Guarantor | Government | Provided a Policy-Based Guarantee to partially back the financing facility. |
| Abu Dhabi Islamic Bank (ADIB) | Mandated Lead Arranger | Companies | A leading regional bank participating as a Mandated Lead Arranger in this transaction. |
| Ajman Bank | Arranger | Companies | Participated as an arranger in the financing alongside other regional institutions. |
| Sharjah Islamic Bank | Arranger | Companies | Involved as an arranger in the facility, contributing to the Islamic tranche of the financing. |
| HBL | Arranger | Companies | Pakistani bank participating as an arranger in the financing transaction. |