Pakistan’s Debut Panda Bond Draws Strong Global Demand

BEIJING/ISLAMABAD, May 15 (Gwadar Pro) - Pakistan’s successful debut Panda Bond issuance in China’s onshore capital market marks a historic breakthrough in the country’s re-entry into international capital markets and reflects growing global confidence in its economic reform trajectory, Finance Minister Senator Muhammad Aurangzeb said Thursday.

The RMB-denominated sovereign bond, Pakistan’s first-ever Panda Bond, raised RMB 1.75 billion (around US$250 million) through a three-year fixed-rate instrument, attracting investor demand of more than RMB 8.8 billion (approximately US$1.26 billion), resulting in an oversubscription of over five times.

In a statement issued from Beijing, Aurangzeb described the successful issuance as a “historic achievement” in Pakistan’s economic and financial history, saying the exceptional response from global investors reflected increasing confidence in the country’s economic transformation, reform process and sovereign financial credibility.