ISLAMABAD: Pakistan will start investor roadshows on Thursday for a potential sale of U.S. dollar-denominated Islamic bonds, aiming to begin the pricing and book-building process next week, the Ministry of Finance said on Wednesday.
If successful, the deal would mark Pakistan´s return to the international sukuk market after a two-year absence. It last raised $1 billion via sukuk in late 2014.
Investor meetings will start on Thursday in the United Arab Emirates before moving to London on Friday and concluding in Boston and New York on Oct. 3 and 4.”There will be pricing and book-building on the 5th, and then we will make a decision on this.
Terms and conditions are obviously dictated by the market,” said Finance Ministry spokesman Mehreen Liaquat. Investor presentations will be made by the central bank governor and finance secretary.
Citi, Standard Chartered, Dubai Islamic Bank and Noor Bank of the United Arab Emirates had been appointed to arrange the sukuk issue, banking sources said. Deutsche Bank is also likely to be involved, according to one of the sources with direct knowledge of the deal.
Deutsche Bank declined to comment. Citi, Deutsche, Dubai Islamic and Standard Chartered were joint lead managers of Pakistan´s dollar sukuk issue in 2014.
The new deal would be benchmark-sized, according to two banking sources, which traditionally means at least $500 million. The fund-raising plan by Pakistan, rated B3 by Moody´s and B- by Standard & Poor´s, comes at a busy time in the region´s debt capital markets.
Oman is expected to complete a $1.5 billion bond sale this week through taps of its five- and ten-year notes, while Bahrain started a roadshow on Wednesday for a dual-tranche debt offer comprising a sukuk issue and a conventional bond.