Pakistan has successfully raised a record $3 billion from international investors through a dual-tranche Eurobond sale, the country’s largest single transaction in the global capital markets.
The Ministry of Finance confirmed that the offering attracted nearly $6 billion in orders, almost double the amount issued, from a wide range of institutional investors across different regions. This strong demand highlights renewed interest in Pakistan’s economy.
The bonds were split into two parts. The government sold $1.75 billion of 5.5-year bonds carrying a 7.5% coupon rate and $1.25 billion of 10-year bonds at 7.9%. These rates are competitive compared with some of Pakistan’s earlier, more expensive borrowings from over a decade ago.
This issuance is seen as an important step in Pakistan’s broader plan to regain regular access to international funding markets. It follows recent improvements in the country’s credit ratings and comes after smaller bond sales earlier in the year. Officials described it as the first major deal under the country’s renewed Global Medium-Term Note programme and part of a longer “road to market” strategy that also includes earlier successful issues such as a Panda Bond.
Major international banks, including Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered, managed the transaction as joint bookrunners.
The funds will help Pakistan meet external financing needs and diversify its sources of borrowing beyond traditional bilateral and multilateral lenders. The strong response, especially for the longer 10-year bond, suggests that global investors are taking a more positive view of the country’s improving economic fundamentals and credit profile.