ISLAMABAD: Pakistan has raised another $3 billion through Eurobonds in the international market, with the government describing its return to the global bond market as a major development for the country’s economy.
The Ministry of Finance said Pakistan has successfully issued $3 billion in Eurobonds, calling the move a landmark achievement in the international financial market.
According to the ministry, Pakistan received offers worth $6 billion for the Eurobonds and, for the first time, secured the opportunity to issue $3 billion in Eurobonds in a single transaction.
The Ministry of Finance said the successful issuance reflected renewed international confidence in Pakistan. It added that the improved credit rating for Pakistan’s debt repayment prospects helped make the successful Eurobond issuance possible.
According to the ministry, the bonds have been issued for five-and-a-half-year and 10-year maturities. Pakistan will pay interest ranging from 7.50% to 7.90% on the $3 billion Eurobonds.
The funds raised through the bond issuance will be used to repay existing debt.
Meanwhile, Finance Minister’s Adviser Khurram Shahzad had said a day earlier that Pakistan was offering a dual-tranche Eurobond comprising two dollar-denominated bonds with five-year and 10-year maturities to raise funds from international investors.
The finance adviser said global investor confidence in Pakistan was being restored due to economic stability and stronger macroeconomic indicators.
He said Pakistan’s return to international capital markets reflected renewed economic confidence and new investment opportunities, while the Eurobond issuance marked an important step towards the country’s effective re-entry into the global financial system.
