Pakistan has raised $3 billion through a dual-tranche Eurobond sale that drew nearly $6 billion in orders, its finance ministry said on Thursday.
It raised $1.75 billion through a 5.5-year bond at a coupon rate of 7.5% and $1.25 billion through a 10-year bond at 7.9%, the ministry said.
“Pakistan has successfully issued US$3 billion through a landmark dual-tranche Eurobond transaction, the largest-ever international bond issuance by Pakistan in a single transaction,” said the ministry.
“The transaction attracted nearly $6 billion in orders — almost twice the amount issued — from a broad and diversified base of institutional investors across global markets and continents,” it added.
The finance ministry said that the successful transaction marks a major milestone in Pakistan’s renewed and increasingly diversified access to international capital markets, demonstrating strong investor confidence and Pakistan’s ability to access global funding markets at significant scale.
It added that the transaction also represents an important milestone in Pakistan’s broader road to market strategy.
“Following the successful inaugural Panda Bond and improvements in Pakistan’s sovereign credit profile, this is the first issuance under Pakistan’s renewed strategic Global Medium-Term Note (GMTN) Programme — creating a platform for diversified access to international capital markets.
“The objective is not simply to raise additional debt. Pakistan is pursuing a broader strategy of active sovereign liability management — diversifying financing sources, extending maturities, reducing refinancing and rollover risks, and creating opportunities to replace shorter-term and more expensive obligations with longer-duration, competitively priced financing, where economically beneficial,” the ministry said
The ministry lauded the role of the Debt Management Office for successfully delivering this transaction.
“The Ministry of Finance, Government of Pakistan, highly appreciates the excellent work of the Joint Bookrunners — Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered — in successfully managing and executing this landmark transaction.”
It said that over the past three years, Pakistan’s improving economic trajectory has increasingly been recognised through successive sovereign credit-rating upgrades and renewed access to international capital markets.
“Now global investors have reinforced that assessment with billions of dollars of actual capital,” it said.
Comments