Investors show 'great confidence' in Pakistan says Azhar, after successful bond deal
- Pakistan launched a three-tranche bond deal on Tuesday to raise $2.5 billion comprising tranches of five, 10, and 30 years for which it received over $5.3 billion in combined orders, a document showed, in its first international bond sale since late 2017.
Finance Minister Hammad Azhar has said that global investors have shown ‘great confidence' in Pakistan’s economy after the country launched a three-tranche bond deal to raise $2.5 billion on Tuesday.
“Pakistan has very successfully concluded its first-ever 3-tranche capital market transaction yesterday. With 5, 10, and 30 year Eurobonds at 6%, 7.375%, and 8.875%, leading global investors showed great confidence in our country's economy and future outlook,” said Azhar in a tweet post on Wednesday.
Pakistan launched a three-tranche bond deal on Tuesday to raise $2.5 billion comprising tranches of five, 10, and 30 years for which it received over $5.3 billion in combined orders, a document showed, in its first international bond sale since late 2017.
Pakistan sold $1 billion in five-year bonds at 6%, $1 billion in 10-year paper at 7.375% and $500 million in 30-year notes at 8.875%, the document from one of the banks on the deal showed.
Initial guidance on Tuesday was around 6.25% for the five-year portion, around 7.5% for the 10-year tranche, and between 8.875% and 9% for the 30-year paper.
Cash-strapped Pakistan has been in dire need of funds after its economy contracted after being hard hit by the COVID-19 pandemic.
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