Pakistan has raised $3 billion through a record two-tranche Eurobond issuance, marking the country’s largest ever international bond transaction in a single issuance, according to the Ministry of Finance.
The transaction drew nearly $6 billion in orders from institutional investors across global markets, almost twice the amount offered. Pakistan issued $1.75 billion through a 5.5-year Eurobond carrying a 7.50 percent coupon and another $1.25 billion through a 10-year Eurobond with a 7.90 percent coupon. The demand for the longer maturity was particularly notable as investors showed willingness to hold Pakistan’s debt for an extended period.
The transaction is also the first issuance under Pakistan’s renewed Global Medium Term Note program following the country’s inaugural Panda Bond and improvements in its sovereign credit profile. The program is intended to give Pakistan a broader platform for accessing international capital markets rather than relying on a limited set of financing sources.
The government said the strategy goes beyond simply raising new debt and is aimed at improving sovereign liability management. This includes diversifying funding sources, extending debt maturities and reducing refinancing and rollover risks. Pakistan also intends to use longer-term financing to replace shorter-term or more expensive obligations where economically beneficial.
The Ministry of Finance said the Debt Management Office played a key role in executing the transaction. Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered acted as joint bookrunners, while other stakeholders, including legal advisers, also supported the issuance.
The government pointed to successive sovereign credit rating upgrades and renewed access to international capital markets as signs of improved confidence. The nearly $6 billion investor demand and record $3 billion issuance provide a market-based indication of appetite for Pakistan’s sovereign debt.
However, the transaction does not remove the challenges facing Pakistan’s economy. Fiscal discipline, structural reforms, export competitiveness, investment and productivity will remain important for sustaining investor confidence and improving the country’s debt position.
