Pakistan gets $2.5b via Eurobond issue

Country enters global capital market by offering 5, 10 and 30-year bonds

ISLAMABAD:

Pakistan has entered the international capital market after a gap of over three years by successfully raising $2.5 billion through a multitranche transaction of 5-, 10- and 30-year Eurobonds.

“SBP has received proceeds of government’s $2.5 billion Eurobond issuance in its account. As a result, SBP’s FX reserves closed above $16 billion Thursday, their highest level since July 2017,” the State Bank of Pakistan tweeted.

The transaction generated great interest as leading global investors from Asia, the Middle East, Europe and the US participated in the global investor calls and the order book, according to a statement issued by the Ministry of Finance.

This is for the first time Pakistan has adopted a programme-based approach with the registration of Global Medium Term Note (GMTN) programme. The programme will allow Pakistan to tap the market at a short notice.

The government intends to make full use of this programme and become a regular issuer in the international capital markets.

It was reported earlier that Pakistan had borrowed $2.5 billion through Eurobonds by offering very lucrative interest rates to lenders.