Pakistan successfully issues new Bond of $500m in Eurobond market

Investors were appreciative of Pakistan's progress in stabilising economy and reforms carried out in critical sectors

Pakistan successfully issued on Friday a new Bond of $500 million with a maturity of 10 years in the international Eurobond market, Radio Pakistan reported.

The coupon rate was 8.25%, equivalent to the rate at which it issued the same bonds in April last year.

Roadshows were conducted for launching the bond in London, Los Angeles and Boston by a team comprising Finance Secretary Waqar Masood Khan and Governor State Bank of Pakistan Ashraf Wathra.

Read: Pakistan to issue another $1 billion Eurobond this week

Finance Minister Ishaq Dar led the final roadshow at New York on Wednesday and the pricing of the bond was held on Thursday.

Pakistan came to the market on the back of a good track record of economic management since its last issue. The investors were appreciative of the progress made in stabilising the economy and reforms carried out in critical sectors of energy, privatisation, tax administration and investment climate.

Earlier, Finance Secretary Waqar Masood told Reuters that Pakistan was hoping to raise at least $500 million by selling its debt, but hinted that it could sell more. “We are not fixated on the size. We can definitely do more and we are open with regards to the tenor too,” he said.

The launching of the Euro bond, the third global issue in less than two years, highlights the government’s lack of commitment to structural reforms hampering economic growth, according to independent economists.