ISLAMABAD: The Ministry of Finance has decided to hire the services of a Chinese Credit Rating Agency for issuance of a Panda Bond Transaction in the Chinese Capital Market.

Finance Ministry Debt Management Office uploaded request for proposal on its website on Saturday that Finance Division intends to carry out a Panda Bond transaction in the Chinese Capital Markets. For this purpose, the Finance Division intends to engage the services of a Chinese credit rating agency and interested Chinese credit rating agencies are invited to submit their proposals individually to work as government of Pakistan’s Credit Rating Counsel.

Only agencies enlisted/ connected with PPRA on E-PADS software as vendors are eligible to give technical and financial proposals. The prospective agencies are required to submit their technical and financial proposals online through E-PADS in accordance with the provisions of PPRA Rule 36 (a) and other terms and conditions as defined in the bidding documents till 29th July 2024.

The engagement of Chinese credit rating agency for government of Pakistan’s Panda Bond issuance will be done through an open competitive process with terms and references (ToRs); (i) to issue credit rating to the issuer before the transaction takes place (credit rating reports of GoP); (ii) issue credit rating to the Panda Bond to be issued by the issuer (credit rating results); (iii) conduct annual surveillance of the ratings; and (iv) perform all other services as may be required for successful execution of Panda Bond transaction.

Ministry of Finance for the Panda Bond transaction also intends to engage the services of a Peoples Republic of China (PRC) law firm and domestic legal firm. Interested PRC firms are invited to submit their proposals by 29th July 2024.

The Finance Division has also sought proposals from domestic legal counsel and advised them to submit their proposals individually to work as government of Pakistan’s domestic legal counsel.

The prospective legal counsels are required to submit their technical and financial proposals online through E-PADS, in accordance with the provisions of PPRA Rule 36(a) and other terms and conditions as defined in the bidding documents by the deadline of 15th July 2024.

Copyright Business Recorder, 2024