KARACHI, PAKISTAN: ABHI, a leading embedded finance platform in the Middle East, North Africa and Pakistan (MENAP) region, has announced that it has issued Islamic bonds worth PKR 2 billion (US$7.1 million), making it the first Fintech in the region to do so.

The Islamic bonds, also known as Sukuk, are financial instruments that comply with Islamic law and are based on Islamic principles. They are structured in a way that ensures Shariah compliance and avoids interest payments, which are forbidden in Islam. Sukuk are attractive to investors who want to support businesses that align with their Islamic values.

ABHI, which provides working capital financing and payroll solutions to businesses and their employees in Pakistan, said that the demand for the Sukuk exceeded expectations, with subscriptions reaching twice the anticipated amount. The company attributed this to its strong credit ratings, creditworthiness and profitability.

In 2022, ABHI was assigned a long-term instrument rating of ‘AA’ and a short-term rating of ‘A1+’ by PACRA, a leading credit rating agency in Pakistan. These ratings enabled ABHI to issue the Sukuk and marked a first for a Non-Banking Financial Company (NBFC) in Pakistan.

ABHI’s successful issuance of Sukuk is a significant achievement for the company and the broader financial industry in Pakistan. It represents a new era of financial innovation in the country and is expected to have a positive impact on the economy.

The bond issuance immediately follows ABHI’s qualification for the international selection panel (ISP) by Endeavor, a global network of entrepreneurs and investors, and its selection by Hub71, a tech ecosystem in Abu Dhabi, to boost its expansion into the Middle East. ABHI is partnering with companies in the region to financially empower them and their employees through its embedded finance platform.

Omair Ansari, CEO and co-founder of ABHI, said:

“We are honored to have the support of PACRA and all the investors to launch this first-of-a-kind Sukuk. This is a testament to our team’s hard work and dedication, and our commitment to supporting businesses and their employees in Pakistan. With this new funding, we can help ease the financial burden on struggling companies and provide much-needed relief through working capital financing during these challenging times.”