ISLAMABAD(National Times)- Pakistan on Tuesday launched the process for a US dollar-denominated benchmark dual-tranche Eurobond offering with five-year and 10-year tenors, as the government seeks to deepen its return to international capital markets following recent sovereign rating upgrades.<\/p>\n\n\n\n
Adviser to the Finance Minister Khurram Schehzad said in a post on X that the proposed transaction was subject to market conditions and represented another step in Pakistan\u2019s renewed access to international capital markets.<\/p>\n\n\n\n
The size of the proposed issuance, pricing and final yields are yet to be announced and will depend on investor demand and prevailing market conditions. Mr Schehzad said the transaction followed improvements in Pakistan\u2019s sovereign credit ratings and macroeconomic indicators and reflected the country\u2019s growing engagement with international investors.<\/p>\n\n\n\n
The latest move comes less than five months after Pakistan returned to the international bond market following a four-year absence.<\/p>\n\n\n\n
Minister\u2019s aide calls it another step in country\u2019s renewed access to global capital markets<\/p>\n\n\n\n
In April, the government initially raised $500 million through a three-year Eurobond under its Global Medium-Term Note (GMTN) Programme at a coupon of 6.975pc. The issue was subsequently increased to $750m through a $250m green-shoe option after stronger-than-expected investor demand. The bond matures in April 2029.<\/p>\n\n\n\n
Pakistan has also repaid a $1.4 billion Eurobond that matured in April, allowing the government to re-establish a pricing benchmark in international debt markets after several years of relying heavily on multilateral, bilateral and commercial financing.<\/p>\n\n\n\n
On Tuesday, S&P also assigned a \u2018B\u2019 rating to Pakistan\u2019s GMTN programme and the proposed benchmark US dollar notes, in line with the sovereign rating.<\/p>\n\n\n\n
Fitch Ratings also assigned the GMTN programme a \u2018B-\u2019 rating with a Recovery Rating of \u2018RR4\u2019, in line with the country\u2019s long-term sovereign rating.<\/p>\n\n\n\n
The latest offering extends the maturity profile beyond the three-year tenor used in April, with the proposed five- and 10-year tranches providing a test of investors\u2019 willingness to hold Pakistani sovereign debt for longer periods.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD(National Times)- Pakistan on Tuesday launched the process for a US dollar-denominated benchmark dual-tranche Eurobond offering with five-year and 10-year tenors, as the government seeks to deepen its return to international capital markets following recent sovereign rating upgrades. Adviser to the Finance Minister Khurram Schehzad said in a post on X that the proposed transaction […]<\/p>\n","protected":false},"author":2,"featured_media":132364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-132363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest_news","entry"],"yoast_head":"\n