ABHI, an Islamic fintech company focused on providing payroll and wage solutions for businesses and their employees in Pakistan, has issued Sukuk worth PKR2 billion (US$6.93 million).
The Islamic paper was oversubscribed two times, exceeding expectations, due to ABHI’s strong credit ratings, creditworthiness and profitability, the company said.
The issuance was launched immediately after ABHI’s qualification for the international selection panel by Endeavor, an investment firm focused on supporting entrepreneurs, and the fintech company’s selection by accelerator Hub71, to boost ABHI’s expansion into the Middle East.
Pakistan Credit Rating Agency (PACRA) had, earlier this month, assigned the Sukuk a preliminary long-term rating of ‘AA’ and a short-term rating of ‘A1+’, with a stable outlook.
The rating agency had, at the time, confirmed that the then-upcoming Sukuk would have a six-month tenor and carry a profit rate of 6MK+ (250–300bps). The Sukuk had also been intended to be offered through private placement, to finance the company’s working capital markets.
“We are honored to have the support of PACRA and all the investors to launch this first-of-a-kind Sukuk … 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,” Omair Ansari, CEO and co-founder of ABHI, said.
The fintech company has twice raised funds successfully: US$2 million in 2021 through a seed round led by Vostok Emerging Finance, and US$17 million in a Series A funding round. It previously announced that it planned to expand into the GCC, Africa and South Asia by 2023.