Pakistan has taken another step toward restoring its presence in international capital markets by starting a new dollar Eurobond process. The government plans to offer five-year and 10-year bonds through a dual-tranche transaction.
The proposed issuance will depend on market conditions, investor demand and prevailing borrowing costs. However, authorities have not yet announced the issue size, pricing or final yields.
Finance Minister’s Adviser Khurram Schehzad said the transaction marked further progress in Pakistan’s renewed access to global capital markets. He added that recent improvements in sovereign credit ratings and economic indicators supported the move.
Pakistan expands Eurobond maturity profile
The latest plan comes less than five months after Pakistan returned to the international bond market following a four-year gap.
In April, the government raised $500 million through a three-year Eurobond under its Global Medium-Term Note (GMTN) Programme. The bond carried a coupon of 6.975 percent and was later increased to $750 million.
The increase followed stronger-than-expected demand from investors. The bond is scheduled to mature in April 2029.
Meanwhile, Pakistan repaid a $1.4 billion Eurobond that matured in April. The repayment helped the government rebuild a pricing benchmark in international debt markets.
On Tuesday, S&P Global Ratings assigned a ‘B’ rating to Pakistan’s GMTN programme. It also gave the proposed dollar notes the same rating as the sovereign.
Similarly, Fitch Ratings assigned a ‘B-’ rating to the GMTN programme. It also gave the programme a Recovery Rating of ‘RR4’.
The new offering will extend Pakistan’s borrowing maturity beyond the three-year bond issued in April. Therefore, the five-year and 10-year tranches will provide an important test of investor confidence.
The government will closely watch market conditions before finalising the transaction. Strong demand could support Pakistan’s efforts to secure longer-term international financing.
At the same time, the proposed Eurobond signals continued efforts to rebuild investor confidence after years of limited access to global debt markets. The outcome could also establish new pricing benchmarks for future international borrowing.
