ISLAMABAD – Pakistan will issue its first-ever Panda bond before December, seeking to raise $250 million through yuan-denominated debt, Bloomberg News reported.
The three-year bonds, carrying an indicative coupon of 3–4% per annum, will be privately placed in China’s interbank market and offered to qualified institutional investors. The deal is being structured with China International Capital Corporation Ltd. and Habib Bank Ltd. as advisers and underwriters.
In July, Pakistan’s Finance Ministry held pre-marketing investor meetings in Beijing as part of a non-deal roadshow. The launch is subject to final documentation, approvals, and credit guarantees from multilateral partners.
Finance Minister Muhammad Aurangzeb earlier said the inaugural issuance would be around $300 million, marking Pakistan’s entry into China’s capital market after previously issuing debt in U.S. dollars and euros.
The move is part of efforts to diversify external financing amid persistent balance-of-payments pressures.
