Pakistan on Thursday issued its first-ever Panda Bond in China’s onshore capital market, Adviser to the Finance Minister Khurram Schehzad announced in a post on X.
Noting this marked the country’s first-ever entry into the world’s second-largest and deepest capital market, he said the inaugural Panda Bond is a 3-year fixed-rate instrument, making it Pakistan’s first-ever RMB-denominated sovereign issuance in China’s onshore capital market.
“The landmark Panda Bond issuance of RMB 1.75 billion (equivalent to $250 million) attracted overwhelming investor demand of over RMB 8.8 billion (approximately $1.26 billion), resulting in an oversubscription of more than five times,” he wrote.
A day earlier, Finance Minister Muhammad Aurangzeb had left Islamabad for China to participate in the issuance ceremony of the inaugural Panda Bond.
“Importantly, demand for the inaugural tranche alone exceeded Pakistan’s entire planned Panda Bond program size of RMB 7.2bn ($1 billion equivalent)—a powerful reflection of growing international investor confidence in Pakistan’s economic outlook and reform trajectory,” said Schehzad. “The strong order book enabled highly competitive pricing (2.5% coupon), demonstrating the market’s positive assessment of Pakistan’s improving macroeconomic fundamentals, external stability, disciplined fiscal management, and sovereign repayment capacity,” he added.
According to the adviser, the issuance yields several benefits, including diversifying the country’s investor base, strengthening Pak-China financial cooperation, and enabling Pakistan’s structured return to international markets from a position of improving stability and credibility. “The success of the Panda Bond sends a powerful signal to global investors that Pakistan’s economic recovery is gaining international recognition. It reflects confidence in the country’s reform agenda, improving fiscal and external indicators, successful debt management, and commitment to sustainable growth,” he maintained.
“This milestone marks the beginning of a new chapter in Pakistan’s economic and financial engagement with the world,” wrote Schehzad, asserting Pakistan’s steady transition from stabilization to strategy, from crisis management to market confidence, and from short-term financing pressures to long-term capital market access.
The Panda Bond marks Pakistan’s second entry to international markets in as many months. Last month, the country launched a Eurobond to raise $750 million.