ISLAMABAD: Pakistan has generated a record $3 billion from the dual-tranche Eurobond sale. It marked Pakistan’s largest international capital market transaction to date.
According to the Ministry of Finance, the Eurobond issue attracted $6 billion in orders from institutional investors across global markets.
The strong demand nearly doubled the amount Pakistan offered and highlighted renewed investor confidence in the country’s economic outlook.
Strong Demand Across Two Maturities
Pakistan issued $1.75 billion through a 5.5-year Eurobond carrying a 7.50% coupon. Meanwhile, it raised another $1.25 billion through a 10-year Eurobond with a 7.90% coupon.
The competitive pricing and strong demand for the longer-term bond demonstrated Pakistan’s improved access to international financing.
Moreover, the transaction represents a significant step in the government’s broader strategy to diversify funding sources.
The issuance marks Pakistan’s first transaction under its renewed Global Medium-Term Note Programme.
It follows the country’s inaugural Panda Bond and improvements in its sovereign credit profile.
Government Targets Lower Refinancing Risks
The government aims to manage sovereign liabilities more actively rather than simply increase borrowing.
Therefore, Pakistan plans to diversify financing sources, extend maturities and reduce refinancing and rollover risks.
The strategy could also help replace shorter-term and costly obligations with longer-duration financing when economically beneficial.
The Ministry said Pakistan has already pursued substantial early retirement of domestic debt before maturity.
It added that extending this approach to external financing remains part of the broader debt management strategy.
The ministry also praised the Debt Management Office for successfully executing the landmark transaction.
Furthermore, it acknowledged the contribution of joint bookrunners Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered.
The government also appreciated the support provided by legal counsels and other stakeholders involved in completing the transaction.
