DUBAI: Pakistan launched a three-tranche bond deal to raise $2.5 billion comprising tranches of five, 10 and 30 years for which it received over $5.3 billion in combined orders, a document showed, in its first international bond sale since late 2017.
Pakistan sold $1 billion in five-year bonds at 6%, $1 billion in 10-year paper at 7.375% and $500 million in 30-year notes at 8.875%, the document from one of the banks on the deal showed.
Initial guidance on Tuesday was around 6.25% for the five-year portion, around 7.5% for the 10-year tranche and between 8.875% and 9% for the 30-year paper.
Dubai lender Mashreq said in a research note that fair value was around 5.8%-5.9% for the five-year bonds, around 6.93%-7.03% for the 10-year and 9%-9.1% for the 30-year, meaning the five and 10-year tranches launched at a premium while the 30-year was at a discount.
Cash-strapped Pakistan has been in dire need of funds after its economy contracted after being hard hit by the COVID-19 pandemic.
