Pakistan issues first Panda Bond in China’s onshore capital market
- Inaugural Panda Bond is a 3-year fixed-rate instrument, making it Pakistan’s first-ever RMB-denominated sovereign issuance in China’s onshore capital market, says Advisor to the Finance Minister Khurram Schehzad
Pakistan successfully issued its first RMB-denominated Panda Bond in China's onshore capital market, raising US$250 million with significant oversubscription, signaling strong investor confidence in its economic recovery.
- Details of Pakistan's inaugural Panda Bond issuance.
- Investor demand and competitive pricing achieved.
- Implications for Pakistan's economic outlook and China-Pakistan financial cooperation.
Pakistan issued on Thursday its first Panda Bond in China’s onshore capital market, Advisor to the Finance Minister Khurram Schehzad announced.
“The inaugural Panda Bond is a 3-year fixed-rate instrument, making it Pakistan’s first-ever RMB-denominated sovereign issuance in China’s onshore capital market,” Schehzad wrote in a post on X.
“The landmark Panda Bond issuance of RMB 1.75 billion (equivalent to US$250 million) attracted overwhelming investor demand of over RMB 8.8 billion (approximately US$1.26 billion), resulting in an oversubscription of more than 5 times,” he added.
- Panda Bonds are yuan-denominated bonds issued by foreign governments or institutions in China.
Schehzad said demand for the inaugural tranche alone exceeded Pakistan’s entire planned Panda Bond programme size of RMB 7.2 billion (US$1 billion equivalent). He termed the development “a powerful reflection of growing international investor confidence in Pakistan’s economic outlook and reform trajectory”.
“The strong order book enabled highly competitive pricing (2.5% coupon), demonstrating the market’s positive assessment of Pakistan’s improving macroeconomic fundamentals, external stability, disciplined fiscal management, and sovereign repayment capacity.”
According to the advisor, the issuance was more than a financing transaction as it marked Pakistan’s entry into China’s capital market and strengthened of Pakistan-China financial cooperation.
“The success of the Panda Bond sends a powerful signal to global investors that Pakistan’s economic recovery is gaining international recognition. It reflects confidence in the country’s reform agenda, improving fiscal and external indicators, successful debt management, and commitment to sustainable growth,” he said. “This milestone marks the beginning of a new chapter in Pakistan’s economic and financial engagement with the world.”
Federal Minister for Finance and Revenue Muhammad Aurangzeb on Wednesday left for China to participate in the issuance ceremony of Pakistan’s inaugural Panda Bond in Beijing.
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