Pakistan wins international award for Panda Bond, plans further China-market issues

Pakistan has won an international award for its CNY1.75 billion ($258 million) Sustainable Panda Bond, with Finance Minister Muhammad Aurangzeb saying the country plans to return to China’s capital market with further debt issues.

Pakistan won the Pioneer Sustainable Sovereign Panda Bond Issuer Award at the 2026 APAC Climate Bonds Awards.

“The 3-year bond at 2.5% attracted 5x+ demand — opening a new pool of global capital, diversifying sovereign financing and strengthening Pakistan-China financial ties,” Adviser to the Finance Minister, Khurram Schehzad, said in a post on a social media platform on Wednesday.

He said that the successful issuance of the Panda Bond provided Pakistan access to China’s capital market and a new avenue of institutional investors, diversified Pakistan’s external financial resources, and further strengthened financial ties between Pakistan and China.

“This landmark transaction was completed with the collaboration of the Government of Pakistan, the Asian Infrastructure Investment Bank (AIIB), the Asian Development Bank (ADB), Chinese authorities, financial advisors, underwriters, and other market partners,” he said.

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The adviser said that the proceeds from the bond will be invested in environmentally friendly and socially important projects, including water, energy, and health.

“This global recognition is yet another important acknowledgement of Pakistan’s growing access to international capital markets, expanding investor base, new sources of financial resources, and ability to raise capital for sustainable development,” he said.

In a video message, Federal Minister for Finance Muhammad Aurangzeb thanked the Climate Bonds Initiative, Government of China, AIIB, ADB, investors, advisers, underwriters and partners behind Pakistan’s Sustainable Panda Bond and its global recognition.

“It’s the first time that Pakistan tapped the second largest, second deepest capital market in the world. From our perspective, it opens a new and deep pool of capital and strengthens the financial dimension of the long-standing strategic relationship between China and Pakistan,” he said.

The minister said that the market response was “amazing”, which indicates a strong vote of confidence in “Pakistan’s improving economic fundamentals”.

“We are not going to be a one-time issuer in China. We are going to go back into the Chinese capital market and print further issues as we go forward.”

He said that the award reflects more than a successful transaction. “It marks Pakistan’s growing access to new pools of global capital, deeper international partnerships and continued progress towards diversified, market-based and sustainable financing.”