Pakistan launches dual-tranche Eurobond offering

Pakistan has started the process for a benchmark Eurobond sale denominated in US dollars, split into two tranches maturing in five and 10 years, according to Dawn. The move, announced on Tuesday, is framed by the government as a way to build on recent sovereign rating upgrades and widen its presence in global debt markets. Khurram Schehzad, adviser to the Finance Minister, wrote on X that the transaction hinges on market conditions.

Size, pricing and yields remain undisclosed, since they hinge on how much appetite investors show and on the broader market backdrop. Schehzad tied the deal to stronger credit ratings and macroeconomic figures, presenting it as evidence of wider engagement with overseas investors. Roughly five months earlier, Pakistan had re-entered the international bond market after four years away.

In April, Pakistan first raised $500 million through a three-year GMTN note at a 6.975pc coupon, later lifting the issue to $750 million with a $250 million green-shoe option. That bond matures in April 2029, and a separate $1.4 billion Eurobond that fell due in April has already been cleared. S&P rated the programme and proposed dollar notes B, matching the sovereign, while Fitch gave the programme B- with a Recovery Rating of RR4. The new tranches stretch maturities past the three years used in April, a test of investor appetite for longer-dated Pakistani sovereign paper.