ADB-backed pact signed for $1bn with ME banks

Making a return to the international capital market after over two years, Pakistan announced on Wednesday that it had signed an Asian Development Bank-backed agreement for $1 billion Syndicated Term Finance Facility (STFC) with commercial banks, primarily based in the Middle East. The $1bn facility is partially backed by a policy-based guarantee of the ADB’s “Improved Resource Mobilisation and Utilisation Reform,” it said. Dubai Islamic Bank acted as the sole Islamic global coordinator, while Standard Chartered Bank acted as the mandated lead arranger and bookrunner. Other financiers include Abu Dhabi Islamic Bank as the mandated lead arranger and Sharjah Islamic Bank, Ajman Bank and Habib Bank Ltd as arrangers. “The facility is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region,” the Ministry of Finance said. This is a five-year multi-tranche facility, including both Islamic and conventional tranches.