Pakistan has raised $3 billion through its largest-ever international bond sale, drawing nearly $6 billion of orders as investors showed renewed appetite for the country’s debt following economic stabilization and improvements to its credit profile.
The dual-tranche transaction comprised $1.75 billion of 5½-year Eurobonds carrying a 7.50% coupon and $1.25 billion of 10-year notes at a 7.90% coupon, the Ministry of Finance said.
Demand for the bonds was almost twice the amount offered, with strong interest in the longer-dated 10-year securities signaling investor confidence in Pakistan’s medium-term outlook.
The sale marks Pakistan’s first issuance under its renewed Global Medium-Term Note program and follows the country’s inaugural Panda Bond, part of a broader effort to restore and diversify access to international capital markets. The government said the transaction forms part of its sovereign liability-management strategy aimed at extending debt maturities, diversifying funding sources and reducing refinancing and rollover risks.
Pakistan is seeking to move beyond simply raising new debt by replacing shorter-term and more expensive obligations with longer-duration financing where economically beneficial, according to the government. The country has already pursued early retirement of domestic debt before maturity and plans to apply similar debt-management principles to its external obligations, the Finance Ministry said.
The nearly $6 billion order book provides a market-based endorsement of Pakistan’s improving economic and credit outlook after several years of stabilization and reform, the government said.
Pakistan’s sovereign profile has improved following successive credit-rating upgrades and renewed engagement with international investors. Strong demand across geographically diversified institutional investors, particularly for the 10-year bond, suggests investors are becoming more willing to take longer-term exposure to the country.
The government said fiscal discipline and structural reforms would remain central to its economic strategy, alongside efforts to improve exports, investment and productivity. The Ministry of Finance credited its Debt Management Office with executing the transaction and named Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered as joint bookrunners.
The $3 billion transaction strengthens Pakistan’s external financing options and gives the government a larger platform for managing its debt profile, though sustained access to global markets will depend on continued fiscal consolidation and progress on structural reforms.
The securities were offered to eligible institutional and professional investors and were not registered for public sale in the U.S.