Strong $6 billion order book highlights renewed investor demand as Pakistan returns to international capital markets
ISLAMABAD: Pakistan has raised $3 billion through a dual-tranche Eurobond transaction after receiving nearly $6 billion in orders from international investors, the Ministry of Finance said on Thursday.
The transaction comprised a $1.75 billion, 5.5-year bond carrying a 7.5 per cent coupon rate and a $1.25 billion, 10-year bond with a 7.9 per cent coupon rate, according to the ministry.
The Finance Ministry described the issuance as Pakistan’s largest-ever international bond issuance in a single transaction, highlighting strong demand from global institutional investors.
“The transaction attracted nearly $6 billion in orders — almost twice the amount issued — from a broad and diversified base of institutional investors across global markets and continents,” the ministry said.
The strong investor response marks a significant development in Pakistan’s renewed access to international capital markets, according to the ministry.
It said the transaction demonstrated investor confidence in Pakistan and its ability to secure international funding at scale.
Eurobond forms part of broader debt strategy
The Eurobond issuance represents an important step in Pakistan’s broader road-to-market strategy, the ministry said.
Following the country’s inaugural Panda Bond and improvements in its sovereign credit profile, the transaction marks the first issuance under Pakistan’s renewed Global Medium-Term Note (GMTN) Programme.
The programme is designed to provide Pakistan with a platform for more diversified access to international capital markets.
The ministry said the objective was not simply to raise additional debt but to pursue a broader strategy of active sovereign liability management.
This includes diversifying financing sources, extending debt maturities, reducing refinancing and rollover risks, and creating opportunities to replace shorter-term and more expensive obligations with longer-duration financing where economically beneficial.
Strong international investor demand
The Finance Ministry said the nearly $6 billion order book reflected strong demand for Pakistan’s bonds, with institutional investors participating from global markets.
It added that Pakistan’s improving economic trajectory over the past three years had increasingly been recognised through successive sovereign credit-rating upgrades and renewed access to international capital markets.
“Now global investors have reinforced that assessment with billions of dollars of actual capital,” the ministry said.
The strong order book means investors placed orders for almost twice the amount Pakistan ultimately raised, signalling broad interest in the country’s latest international debt offering.
Joint bookrunners praised
The ministry also praised the Debt Management Office for successfully executing the transaction.
It acknowledged the role of the joint bookrunners — Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered — in managing and completing the Eurobond issuance.
The latest transaction is expected to strengthen Pakistan’s presence in international capital markets while supporting its strategy of diversifying sovereign financing sources, extending maturities and managing refinancing risks.