S&P gives B- to Pakistan sukuk

Standard & Poor’s said it assigned its B- long-term foreign currency issue rating to a proposed global sukuk trust certificate issuance by the Second Pakistan International Sukuk Co. Ltd.

The Islamic Republic of Pakistan (B-/stable/B) plans to raise funds for general budgetary purposes through a U.S. dollar-denominated Sukuk (trust certificates) via an Ijara (leasing) contract. The Second Pakistan International Sukuk is a newly formed trustee, incorporated in Pakistan, and is wholly owned by the government.

“We understand that the government is using this structure to raise funds in compliance with Sharia law,” S&P said in a news release.

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