Pakistan raises $3bn through dual-tranche Eurobond sale

The Ministry of Finance said on Thursday that Pakistan raised $3bn through a dual-tranche Eurobond sale, a record and its largest single international capital market deal. Orders reached about $6bn, nearly double the size of the issue, according to the ministry. Dawn reported that the government presented the outcome as evidence of renewed investor confidence and wider access to global funding.

The offering consists of $1.75bn in a 5.5-year bond priced at a 7.5 per cent coupon and $1.25bn in a 10-year bond at 7.9pc. The ministry noted that Pakistan's previous costliest Eurobond, issued more than a decade ago at 8.25pc, matured and was repaid a couple of years ago. The ministry also described the deal as the first under the renewed Global Medium-Term Note programme, following the inaugural Panda Bond.

According to the ministry, the deal is part of a wider approach to active sovereign liability management, aimed at diversifying funding, extending maturities and cutting refinancing risk. In April the government had raised $500 million through a three-year bond at 6.975pc, later expanded to $750m, and it has repaid a $1.4 billion Eurobond that matured that month.