KARACHI: Pakistan has mandated four banks to arrange investor meetings ahead of the planned issuance of a seven-year tenor US dollar-denominated Sukuk, with analysts expecting an increased appetite for the country’s debt from global investors seeking higher returns.
The move follows a B3 rating given by Moody’s to the Sukuk offering and the International Monetary Fund (IMF) announcing January 28 meeting with an agenda to hold Pakistan’s sixth review for $6 billion Extended Fund Facility.
Credit Suisse, Deutsche Bank, Dubai Islamic Bank and Standard Chartered Bank were mandated by the government as joint lead managers and joint bookrunners to organize investor calls for the sale of Sukuk on Tuesday, Bloomberg reported, citing a source familiar with the matter.
The bond has been offered under the Trust Certificate Issuance Program of the Pakistan Global Sukuk Program Company Limited, it said.
A benchmark issuance would follow, subject to market conditions, it added. Expected benchmark issuance was $1 billion.
Bankers said the lead arrangers would start communications with investors either by holding two-way investor calls or roadshows, which were a combination of one-on-one meetings and group sessions, to know about the demand and the pricing being expected by them for the issuance.
Roadshows help meet investors face to face and to present and market a new transaction. These could be held in two to three countries, they said.