Pakistan raises $3bn through dual-tranche Eurobond sale

Pakistan successfully raised a record $3 billion through a dual-tranche Eurobond sale, marking its largest single international capital market transaction. The Ministry of Finance reported that the transaction generated nearly $6 billion in orders, almost twice the amount issued, from a wide range of institutional investors across global markets.

The sale included $1.75 billion in 5.5-year bonds with a 7.5% coupon rate and $1.25 billion in 10-year bonds at a 7.9% coupon rate. Pakistan's last major Eurobond was issued more than a decade ago at an 8.25% interest rate and has since been repaid. This successful sale signals strong investor confidence in Pakistan's ability to access global funding markets at scale.

The transaction also represents a milestone in Pakistan's broader market strategy, as part of the country's renewed Global Medium-Term Note (GMTN) Programme. This issuance aims to diversify financing sources, extend maturities, reduce refinancing and rollover risks, and replace shorter-term obligations with longer-duration, competitively priced financing.

Over the past three years, Pakistan's improving economic performance has been recognized through credit-rating upgrades and renewed access to international capital markets. The significant global demand for Pakistani bonds, totaling $6 billion, demonstrates renewed confidence in the country's medium and long-term trajectory. This landmark moment in Pakistan's journey towards sustained growth follows the government's earlier successful Eurobond issuance in April, which raised $500 million, later increased to $750 million through a $250 million green-shoe option.