Key Takeaways
- Pakistan successfully issued $3 billion through a dual-tranche Eurobond transaction.
- The transaction attracted nearly $6 billion in orders from global investors.
- This marks a significant milestone in Pakistan’s access to international capital markets.
Pakistan has successfully issued $3 billion through a landmark dual-tranche Eurobond transaction, the largest-ever international bond issuance by the country in a single transaction, according to the Ministry of Finance.
The transaction, which included a $1.75 billion 5.5-year Eurobond with a 7.50 percent coupon and a $1.25 billion 10-year Eurobond with a 7.90 percent coupon, attracted nearly $6 billion in orders, almost twice the amount issued.
The Ministry of Finance stated 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 the country’s ability to access global funding markets at significant scale.
The competitive pricing across both maturities, together with strong demand extending to the 10-year tenor, demonstrates Pakistan’s ability to mobilise sizeable longer-term financing as international investors reassess the country’s improving macroeconomic and credit fundamentals.
The significance of this transaction goes well beyond the amount raised. The transaction also represents an important milestone in Pakistan’s broader Road to Market strategy, creating a platform for diversified access to international capital markets.
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.
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 Debt Management Office, Ministry of Finance, deserves particular recognition for its pivotal role in successfully delivering this landmark transaction.
The Ministry of Finance, Government of Pakistan, highly appreciates the excellent work of the Joint Book-runners — Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered — in successfully managing and executing this landmark transaction.
The Government also acknowledges and appreciates the invaluable support and cooperation extended by all stakeholders, including the legal counsel to the transaction.
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.
Ministry of Finance, Government of Pakistan
