Pakistan Raised $2.5bn Through Lucrative Eurobonds
Three notes have been issued for five-year, ten-year, and 30-year tenors at high yielding rates
After a gap of over three years, Pakistan issued dollar-denominated Eurobonds and raised $2.5 billion after a lucrative return offer.
The move has been made after the resumption of the $6 billion International Monetary Fund (IMF) bailout program.
The securities offered by Pakistan were oversubscribed to almost $5.3 billion which means that the demand for securities remained higher than its available supply.
Meanwhile, the government also plans to float securities worth $500 million in the global market through green notes for its hydroelectric power projects.
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Three notes have been issued for five-year, ten-year, and 30-year tenors at high yielding rates.
- $1 billion five-year note will yield 6% after initial discussions of 6.25%.
- $1 billion 10-year note will yield 7.375% after initial discussions of 7.5%.
- $500 million 30-year note will yield 8.875% after initial discussions of around 9%.
This is the first time Pakistan Tehreek-e-Insaf (PTI) government is testing the international capital market. The last time capital worth $2.5 billion raised through global investors under Eurobonds and Sukook bonds by Pakistan was in 2017 when Pakistan Muslim League – Nawaz (PML-N) was at the helm.
This included a $1bn 5-year Islamic Sukuk at 5.625pc and another $1.5bn in 10-year Eurobond at 6.875pc.
Further, Pakistan’s rupee against the US dollar has been bullish recently and it dropped to 153 level against the greenback, the highest in past two years.
So far, the Pakistani rupee has gained around 4% in 2021 and is the only currency to dominate US dollar among major Asian currencies.
