Islamabad : The Finance ministry has termed Pakistan’s inaugural Panda Bond as a great show of confidence in Pakistan ‘s economy . In a statement , the Finance ministry said here on Thursday Pakistan’s Ponda bond has been successfully issued in China’s onshore capital market — marking the country’s first-ever entry into the world’s second-largest and deepest capital market.
According to the details given by the Finance ministry with the statement – The RMB 1.75 billion ($250mn) issuance attracted over RMB 8.8 billion ($1.26bn) in investor demand — resulting in an extraordinary 5x+ oversubscription at a highly competitive 2.5% coupon.
It added even more remarkably, demand for the first issuance alone exceeded Pakistan’s entire planned Panda Bond programme size of RMB 7.2 billion ($1bn equivalent).
The Finance ministry noted unprecedented confidence showed by the investors in Pakistan ‘s Ponda bond is a historic vote of confidence in Pakistan’s economic recovery, reform agenda, and return to global capital markets.