Abhi, a growing embedded finance platform in the Menap region, has announced it has made history by issuing Islamic bonds worth $7.1 million. The bond issuance is a significant milestone for both Abhi, and the region, as no other Fintech in the region has successfully achieved this before.
The bond issuance follows Abhi’s qualification for the International Selection Panel (ISP) by Endeavour, and its selection by Hub71 in Abu Dhabi, UAE, to boost expansion into the Middle East, where it is partnering with companies to financially empower them and their employees.
Sukuk, or Islamic bonds, are a Sharia-compliant financial instrument, meaning they are based on Islamic principles, which makes them attractive to investors who want to support businesses align with their Islamic values.
In 2022, Abhi was assigned a long-term instrument rating of ‘AA’ and a short-term rating of ‘A1+’ by PACRA - a first for a Non-Banking Financial Company (NBFC) in Pakistan. These ratings enabled Abhi to issue the Islamic bonds. Demand for the Sukuk exceeded expectations, with subscriptions reaching twice the anticipated amount due to Abhi’s strong credit ratings, creditworthiness and profitability.
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.
Omair Ansari, CEO and co-founder of Abhi, said: “We are honoured 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."
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