ABHI Becomes MENAP’S First Fintech To  Issue Islamic Bonds  

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ABHI, a growing embedded finance platform in the MENAP Region has made history by issuing Islamic bonds worth PKR 2 billion (US$7.1million).

Founded in 2021, ABHI is MENAP’s financial wellness platform, with the sole purpose of financially empowering employers and their employees with instant credit and payment solutions. It strives to provide financial wellness products for businesses and employees to make lives easier by offering Earned Wage Access, Payroll Solutions, Invoice Factoring, and Instant Payments. The fintech company has signed 450+ companies and 750,000+ employees. The fintech has gained recognition from Hub71 and Endeavor and is now expanding across the MENAP region.

Omair Ansari, CEO and co-founder of ABHI, said:“We are honored 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.”

The bond issue is a significant milestone for both ABHI, and the region, as no other Fintech in the region has successfully achieved this before.

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.

Sukuk, or Islamic bond, is a financial instrument complying with Islamic law. They are structured in a way ensuring Shariah compliance – meaning they are based on Islamic principles. This makes them attractive to investors who want to support businesses align with their Islamic values.

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.

The bond issuance immediately follows ABHI’s qualification for the international selection pane (ISP) by Endeavor, and its selection by Hub71 to boost expansion into the Middle East, where it is partnering with companies to financially empower them and their employees.