Global investors Show Faith in Pakistan’s Financial Initiatives
Through its first green bonds, WAPDA aims to raise $500 million for its capital-extensive hydroelectric power projects
The newly-floated dollar-denominated securities by WAPDA were oversubscribed like Eurobonds, depicting the confidence of global investors in Pakistan’s financial initiatives.
To raise money for uplifting its infrastructure, Water and Power Development Authority (WAPDA) floated its dollar-denominated first green Eurobond on Thursday. The security, named Indus bond, will have a 10-year maturity term at a 7.5% interest rate.
Through its first green bonds, WAPDA initially aims to raise $500 million for its capital-extensive hydroelectric power projects.
The authority requires $2.2 billion over the next five years and half of the amount in the first two years.
WAPDA aims to float more bonds in the international capital market from time to time to feed its projects. The securities worth $500 million is the first episode of it.
The veteran journalist Kamran Khan had taken to his Twitter account to share the glad tidings with the nation on May 27.
Very Exciting very positive news from International markets, Pakistan’s WAPDA Green Bond for 500 million USD, till this moment Green Bond has attracted bids worth more than 1.8 billion USD by market close likely to top 2 billion USD, huge confidence on Pakistan Alhamdolillah 👏👏
— Kamran Khan (@AajKamranKhan) May 27, 2021
The gilt-edged bonds managed to draw the attention of the international investors who oversubscribed it to almost $3 billion.
It means that the demand for securities remained higher than its available supply worth $500 million.
This included credible and top companies, including Goldman Sachs, Blackrock, Bluebay, Fidelity, Ashmore, Amundi, and UBS, WAPDA said in a statement.
The Indus bond got listed on the London Stock Exchange on May 24 before they were launched in the international market on Thursday.
Its formal launching ceremony is scheduled in Islamabad on May 31.
PSX continues flight
Similarly, Pakistan Stock Exchange (PSX) broke its previous records on Thursday as 2 billion stocks were traded in a day.
On Wednesday, PSX had crossed the volume of 1.56 billion that too shows the confidence of global investors in Pakistan’s financial market and initiatives.
