According to the Ministry of Finance, Pakistan raised $1.75 billion through a 5.5-year Eurobond with a coupon rate of 7.50 percent, while another $1.25 billion was raised through a 10-year Eurobond carrying a 7.90 percent coupon rate.
The ministry said the bond issue attracted demand of nearly twice the amount offered, describing the strong investor interest as a positive sign of confidence in Pakistan.
The proceeds will provide Pakistan with $3 billion in external financing, which the government plans to use to meet its external financing requirements, particularly debt repayments.
Pakistan had earlier issued a $500 million Eurobond this year. However, the latest $3 billion issuance is the largest single international bond issued by the country at one time.
The Ministry of Finance described Pakistan’s return to the international bond market as an important economic development, saying strong demand from global investors signals a recovery in confidence in the country and improves its access to international capital markets.
The ministry also said Pakistan has issued a bond for the first time under its new Global Medium Term Note Programme.
According to the ministry, the government’s strategy is focused on effective external debt management, securing long-term financing and reducing refinancing and rollover risks.
The ministry said the record-sized Eurobond issuance further strengthens Pakistan’s return to international financial markets, while strong demand from global investors is being viewed as a sign of confidence in the country’s economy and financial policies.
