The dual tranche Eurobond includes $1.75 billion through a 5.5-year bond and $1.25 billion through a 10-year bond. The Finance Ministry said the bonds were issued at coupon rates of 7.5% and 7.9%, respectively.
The strong demand, with orders nearly twice the amount offered, indicates renewed investor interest in Pakistan’s sovereign debt. Investors from different global markets participated in the transaction.
Finance Minister Muhammad Aurangzeb said the issuance is part of the government’s broader debt-management strategy aimed at extending maturities, diversifying financing sources and reducing refinancing and rollover risks.
The government is also considering other international financing instruments, including Sukuk, rupee-denominated dollar-settled bonds and Panda Bonds.
The proceeds are expected to support Pakistan’s external financing and budgetary requirements, with the government also having flexibility to use the funds to replace short-term debt where appropriate.
The latest issuance comes as Pakistan prepares to repay a $3 billion facility obtained from Saudi Arabia earlier this year.
The Finance Ministry said the transaction marks an important step in Pakistan’s renewed access to international capital markets following improvements in its sovereign credit profile.
