The Middle East, Africa, and Pakistan (MENAP) region’s first Sukuk bond was issued by Pakistan’s financial platform Abhi, it was announced on Friday. Abhi’s Rs2 billion ($7.1 million) bond could provide struggling companies with a new avenue to raise much-needed capital.
Due to the company’s good credit ratings, reliability, and profitability, the Karachi-based company, that allows salaried staff to access funds before their payday, said that demand for the Sukuk exceeded expectations, with subscriptions reaching twice the projected number.
Omair Ansari, CEO and co-founder of Abhi, was quoted in the press release as saying, “We are honoured to have the assistance of Pakistan Credit Rating Agency (PACRA) and all the investors to launch this first-of-a-kind Sukuk.
With this additional investment, we will be able to provide much-needed relief through working capital loans to companies. That are struggling during these trying times, said Ansari.
Employees of Abhi’s partners can at any moment take pay advances based on their collected wages via the platform. These advances are funded by the fintech. As a result, it has no impact on the financial statements of the partner employers. Repayments are deducted from the employee’s pay.
Abhi was given a ‘AA’ rating for long-term financial instruments. And a ‘A1+’ grade for short-term instruments by PACRA in 2022, allowing the fintech to issue the Islamic bonds.
The prosperous launch of Sukuk, an investment vehicle in accordance with Islamic law. It was hailed by Abhi as a major accomplishment for the business and Pakistan’s overall financial sector.
“It symbolises an exciting period for financial development in the nation as it is anticipated to result in a beneficial effect on the economy,” the statement read.
The new company claimed that the bond offering came as soon as it was approved for the international selection panel (ISP) by Endeavour. And chosen by Hub71 to help it expand into the Middle East. Where Abhi partners with businesses to give them and their employees financial independence.
Abhi reported a year ago that it raised $17 million in a Series A round of fundraising that was supported by Global Ventures, VentureSouq, VEF. Also Sturgeon Capital, Rallycap, and FJ Labs and led by international venture capital (VC) firm Speedinvest.
Vostok Emerging Finance led the $2 million initial funding round that the startup secured in June 2021. Abhi achieved a significant milestone shortly after its launch, securing funding at a valuation of $40 million. Although the specific amount raised in this round was not disclosed.
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