TAHIR AMIN
ISLAMABAD: Pakistan has successfully issued USD 3 billion through a landmark dual-tranche Eurobond transaction, the largest-ever international bond issuance by Pakistan in a single transaction, said the Ministry of Finance.
The transaction attracted nearly USD 6 billion in orders — almost twice the amount issued — from a broad and diversified base of institutional investors across global markets and continents, said the ministry, adding that 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.
Under the transaction, Pakistan issued USD 1.75 billion through a 5½-year Eurobond carrying a 7.50 percent coupon, while a further USD 1.25 billion was raised through a 10-year Eurobond with a 7.90 percent coupon.
The official statement further noted that the 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.
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. 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 Debt Management Office, Ministry of Finance, deserves particular recognition for its pivotal role in successfully delivering this landmark transaction.
The Ministry of Finance, Government of Pakistan, highly appreciates the excellent work of the Joint Book-runners — 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 counsel to the transaction.
It further stated that 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. Three years of rebuilding credibility; nearly USD 6 billion of global investor demand, and a record USD 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. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the Securities Act), or the laws of any state, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. No public offering of securities will be made in the United States.
Until 40 days after the commencement of the offering, an offer or sale of securities within the United States by any dealer (whether or not participating in the offering) may violate the registration requirements of the Securities Act if such offer or sale is made otherwise than in accordance with Rule 144A under the Securities Act. The material set forth herein is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The material set forth herein has not been approved by the UK Financial Conduct Authority or an authorised person (as defined in Financial Services and Markets Act 2000 (as amended, FSMA)) for distribution. This material set forth herein is only being distributed to and is only directed at, if the distribution is being effected by a person who is not an authorised person under FSMA, only the following persons: (i) persons who are investment professionals as defined in Article 19(5) of the Financial Services and Market Act 2000 (Financial Promotion) Order 2005 (the Order); (ii) persons falling within any of the categories of persons described in Article 49(2) (a) to (d) of the Order; and (iii) any other person to whom it may otherwise lawfully be made in accordance with the Order (all such persons being referred to as relevant persons). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire the securities will be engaged in only with, relevant persons. Any person who is not relevant should not act or rely on the material set forth herein.
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