PM formally inaugurates USD3bn Eurobond on LSE

Prime Minister Muhammad Shehbaz Sharif opened a trading session at the London Stock Exchange on Tuesday, becoming the first Pakistani premier to do so, Business Recorder reported. He also formally inaugurated the USD3 billion sovereign Eurobond, which was issued in two tranches. Speaking at the exchange's Paternoster Square headquarters, he said Pakistan's macroeconomic indicators had strengthened and looked promising for the future.

Pakistan's largest-ever international bond deal drew nearly USD6 billion in demand from global investors, about twice the amount raised. The bond is the first issued under the renewed Global Medium-Term Note (GMTN) programme, which followed a Panda Bond and successive sovereign credit-rating upgrades. The transaction is part of a wider debt management plan aimed at widening the funding base, lengthening maturities and lowering refinancing risk.

He pointed to the earlier privatisation of Pakistan International Airlines and First Women Bank. He said the government was moving to offload more state enterprises, which should be run by private firms. He argued that the Gulf crisis had kept the economy from taking off fully, and suggested Pakistan and the UK could work closely in this area. He also invited LSE chief executive David Schwimmer to visit Pakistan.