ISLAMABAD: Minister for Finance Ishaq Dar on Thursday said that the government has successfully issued sukuk bonds amounting to $1 billion in international bonds market for five years.

Addressing a press conference, Dar said a five-member team of joint lead managers comprising reputed international financial organisations were also formed to conduct the process.

Two teams headed by the governor of State Bank of Pakistan and secretary finance were also formed for organising road shows to introducing the sukuk bonds in international markets, said the minister.

Dar said that road shows were completed in close coordination with the joint lead managers comprising Standard Chartered Bank, Citibank, Deutsche Bank, Dubai Islamic Bank and Noor Bank.

The road shows were organised in Dubai, London, Boston and New York, and had received an overwhelming response from the international buyers due to economic gains achieved during last three years and reforms measures introduced by the government, said the minister.

The sukuk bonds, Dar said, were oversubscribed and bidding of $2.4 billion was received from the potential investors, adding that it was decided to float only $1 billion.

The interest rate was fixed at 5.5 per cent which was the lowest in the economic history of the country whereas, 124 leading institutions had take part in book building process.

Ishaq Dar said that JML had finalised the 90 institutions to take part in bidding process of sukuk bonds and it would not increase the foreign debt burden on the country.

The minister said that other objective of the issuance of the bond was the presence of the country in international bonds market and to promote and attract foreign direct investments (FDI).