ISLAMABAD : The ministry of Finance on Thursday said Pakistan has successfully issued US$3 billion through a landmark dual-tranche Eurobond transaction,
the largest-ever international bond issuance by Pakistan in a single transaction. The transaction
attracted nearly US$6 billion in orders — almost twice the amount issued — from a broad and diversified base of institutional investors across global markets and continents.
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.
The Transaction – US$1.75 billion — 5½-year Eurobond- Coupon: 7.50%
– US$1.25 billion — 10-year Eurobond
– Coupon: 7.90%. – Total Issued: US$3.0 billion- Global Demand: Nearly US$6.0 billion.
The announcement made by the Finance ministry added that 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. However, the significance of this transaction goes well beyond the amount raised.
“A Strategic Road to Global Markets
The transaction also represents an important milestone in Pakistan’s broader Road to Market strategy 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 — creating a platform for diversified access to international capital markets”, it noted.
The official announcement maintained that the objective is not simply to raise additional debt. 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.
“Pakistan has already pursued substantial early retirement of domestic debt ahead of maturity. Extending that discipline to external financing is part of the same objective: Borrow better. Extend maturities. Diversify funding. Reduce refinancing risk. Improve the sovereign debt profile.This is the difference between simply borrowing and actively managing the sovereign balance sheet”.
The announcement appreciated the role of Debt Management Office, Ministry of Finance, and said “it deserves particular recognition for its pivotal role in successfully delivering this landmark transaction.
Partners in the Landmark Transaction
The Ministry of Finance, Government of Pakistan, highly appreciates the excellent work of the Joint Bookrunners — 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 counsels to the transaction.
The Market Verdict Over the past three years, Pakistan’s improving economic trajectory has increasingly been recognised through successive sovereign credit-rating upgrades and renewed access to international capital
markets. Now global investors have reinforced that assessment with billions of dollars of actual capital.
The depth of the order book, its geographically diversified institutional investor base, and substantial demand for a 10-year Pakistan sovereign instrument together provide a powerful market-based signal of renewed confidence in Pakistan’s medium- and long-term trajectory.
The journey is not complete. Fiscal discipline, structural reforms, export competitiveness, investment and productivity improvements will continue and deepen. But Pakistan enters the next stage from a materially stronger position than three years ago: Crisis to Stabilisation, Reform, Credibility, Ratings Upgrades, Investor Confidence to Global Capital.
It further said “Three years of rebuilding credibility; nearly US$6 billion of global investor demand, and a record US$3 billion issued in a single transaction — it is a landmark moment in Pakistan’s journey from economic stabilisation towards sustainable growth — and a stronger platform for the road ahead.
The material set forth herein is for informational purposes only and does not constitute an offer of securities for sale in the United States or in any other jurisdiction in which such an offer or solicitation is unlawful”.