Pakistan plans to raise more money from China’s bond market under an already approved programme. Finance Minister Muhammad Aurangzeb said the country still has a large amount available after its first successful issue earlier this year.
The minister made the comments while accepting an award for the inaugural sustainable Panda Bond at a regional climate finance event. He confirmed that Pakistan will return to the Chinese market for additional issues in the coming period.
The first bond was Pakistan’s debut in China’s onshore market. It carried a low interest rate and attracted strong investor interest. Money raised will support green and social projects such as water supply, clean energy and health services. The bond follows Pakistan’s own sustainable finance rules and matches the State Bank’s green guidelines as well as the national climate plan.
Officials see the programme as a way to open a new source of funding and deepen financial links with China. Future issues are expected to build on the positive response to the first one.
Key details of the Panda Bond programme are given below.
| Item | Amount / Detail |
|---|---|
| Total approved programme | ¥7.2 billion |
| Already issued | ¥1.75 billion |
| Remaining available | ¥5.45 billion |
| First bond tenor | 3 years |
| Coupon rate | 2.5% |
| Use of proceeds | Green and social projects (water, energy, health) |