Treasure Magazine

Treasure Magazine

Pakistan launches $1bn bonds in international market

2 min read
sukuk
It would be the 2nd bond issue in the current year as the government had already raised $2.5 billion in March through US dollar bonds in the international market

KARACHI: Pakistan has launched another $1 billion bonds in the international market on Tuesday at slightly better yield than last time, the market analysts said.

It would be the 2nd bond issue in the current year as the government had already raised $2.5 billion in March through US dollar bonds in the international market.

“With higher imports, this will provide much needed support to FX reserves. With rising oil prices more challenges ahead,” said Mohammad Sohail, Chief Executive Officer (CEO) Topline Securities in a tweet.  

According to the reports available, the subscription amount received for sukkuk bonds amounted to $3 billion for five, 10 and 30 years tenor.

However, the Pakistan accepts $300 million for five-year bonds at 5.875 per cent, $400 million bonds for 10-year bonds at 7.125 per cent and $300 million for 30-year bonds at 8.450 per cent, the document said.

According to foreign news agency, Credit Suisse CSGN.S, Deutsche Bank DBKGn.DE, Emirates NBD Capital ENBD.DU, JPMorgan JPM.N and Standard Chartered STAN.L are arranging the deal, which is expected to launch later on Tuesday.

Pakistan is tapping its existing three-tranche US dollar-denominated bonds sold in March, a document showed on Tuesday, reopening its first international bond sale since late 2017 that raised $2.5 billion.

Pakistan gave initial price guidance of 6%-6.125% for a tranche due in 2026, around 7.375% for bonds maturing in 2031 and around 8.75% for paper due in 2051, the document from one of the banks on the deal showed, the report said.

According to the report, the March transaction’s five-year tranche launched at 6%, the 10-year paper at 7.375% and 30-year notes at 8.875%.