USD3bn raised thru dual-tranche Eurobond sale

Business Recorder reported that Pakistan raised USD 3 billion through a dual-tranche Eurobond, which the Ministry of Finance described as the largest international bond issue by the country in a single transaction. Orders reached nearly USD 6 billion, almost double the amount sold, from institutional investors across several continents.

The sale comprised USD 1.75 billion of 5½-year paper priced with a 7.50 percent coupon, plus USD 1.25 billion of 10-year bonds paying 7.90 percent. According to the ministry, strong demand at the longer tenor shows the country can raise sizeable long-term financing. It is also the initial issue under the revamped Global Medium-Term Note programme, which the ministry said widens Pakistan's options in international markets.

The ministry presented the transaction as part of a wider debt management approach focused on lengthening maturities, spreading funding sources and lowering refinancing risk. Standard Chartered was one of five joint book-runners, alongside Citi, Deutsche Bank, Emirates NBD and MUFG.