4 hrs ago
Pakistan Raises USD 3 Billion in Record Dual-Tranche Eurobond Sale
Pakistan borrowed USD 3 billion from international investors by selling bonds.
Bonds are like loans that investors give to a country.
Pakistan sold the bonds in two different time periods.
One loan will last 5.5 years, while the other will last 10 years.
Investors offered to buy nearly USD 6 billion of the bonds.
This was almost twice the amount Pakistan wanted to raise.
The government said the strong demand shows that investors see signs of improvement in Pakistan’s economy.
The money also gives Pakistan more access to global financial markets.
Pakistan raised USD 3 billion through its largest-ever single-transaction international bond issuance.
The dual-tranche sale attracted nearly USD 6 billion in orders from institutional investors worldwide.
The offering included USD 1.75 billion in 5.5-year bonds with a 7.5% coupon.
It also included USD 1.25 billion in 10-year bonds with a 7.9% coupon.
The Finance Ministry said the demand reflected improved investor views of Pakistan’s economic and credit conditions.
- Who
- Pakistan, through its Ministry of Finance, raised the funds from international institutional investors.
- What
- Pakistan completed a USD 3 billion dual-tranche Eurobond sale.
- Where
- The bonds were sold in international capital markets to investors across global markets and continents.
- When
- The Ministry of Finance announced the transaction on Thursday; the articles do not provide a specific date.
- Why
- Pakistan sought longer-term international financing, while the government said improving economic and credit conditions supported investor demand.
Key facts
- Total raised
- USD 3 billion
- Investor orders
- Nearly USD 6 billion
- 5.5-year tranche
- USD 1.75 billion at a 7.5% coupon rate
- 10-year tranche
- USD 1.25 billion at a 7.9% coupon rate
- Issuance record
- Pakistan’s largest-ever international bond issuance in a single transaction
- Investor base
- Broad and diversified institutional investors across global markets
- Previous comparison
- Pakistan’s last most expensive Eurobond carried an 8.25% interest rate and was issued more than a decade ago
Quotes
Pakistan Ministry of Finance
Pakistan’s government ministry responsible for public finance and the bond issuance 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”
thehansindia.com
Sources
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