Pakistan raises $1 billion through Islamic bond

Question : Which country has recently(January 2022) raised 1 billion dollar through Islamic bond ?
a. Pakistan
b. Bangladesh
c. Iraq
d. Afghanistan
Ans. a.
Related facts —

  • Pakistan has recently(January 2022) raised a whopping 1 billion dollar loan through the Sukuk bond at a record 7.95% interest rate, the highest cost that the cash-strapped country has agreed to pay in its history on an Islamic bond.
  • Pakistan has also agreed to pledge a portion of the Lahore-Islamabad Motorway in return for the much-needed loan.
  • Pakistan had to raise the loan to keep the official foreign exchange reserves at their levels ahead of some major foreign loans’ repayments.
  • Bond term is 7 year tenor.

Reference:

https://www.thehindu.com/news/international/cash-strapped-pakistan-raises-1-billion-through-islamic-bond-at-record-interest-to-keep-forex-reserves-afloat/article38324001.ece