Pak raises USD 3 billion through dual-tranche Eurobond sale

ISLAMABAD, Sept 3: Pakistan raised a record USD 3 billion through a dual-tranche Eurobond sale that drew nearly USD 6 billion in orders, the Ministry of Finance said on Thursday.

The development comes as the economy continues to show signs of improvement after a hectic effort to pull it back from the brink of default in 2022-23.

The dual-tranche international debt offering split into two separate parts attracted nearly USD 6 billion in orders - almost twice the amount issued - from a broad and diversified base of institutional investors across global markets and continents, the ministry said in a statement.

"Pakistan has successfully issued USD 3 billion through a landmark dual-tranche Eurobond transaction, the largest-ever international bond issuance by Pakistan in a single transaction," it said.

The Ministry said that the successful transaction marks a major milestone in Pakistan's renewed and increasingly diversified access to international capital markets.

The transaction includes USD 1.75 billion through a 5.5-year bond at a coupon rate of 7.5 per cent and USD 1.25 billion through a 10-year bond at 7.9 per cent, the ministry said.

Pakistan's last most expensive Eurobond was raised more than a decade ago at an 8.25 per cent interest rate. It reached maturity a couple of years ago and has already been repaid.

The Ministry said the competitive pricing across both maturities, together with strong demand extending to the 10-year tenor, demonstrates Pakistan's ability to mobilise sizeable longer-term financing as international investors reassess the country's improving macroeconomic and credit fundamentals. (PTI)