Pakistan launches $1b bonds in global market

It would be Pakistan’s second bond sale this year, after raising $2.5 billion in March through US dollar bonds in the international market, the government has launched $1 billion bonds in the international market.

Pakistan issued another $1 billion in international bonds on Tuesday, with a little higher yield than the previous issue, according to market watchers.

It would be the government’s second bond sale of the year, after raising $2.5 billion in March through US dollar bonds in the international market.

“With greater imports, this will provide much-needed assistance to FX reserves. With rising oil prices, additional challenges are ahead,” warned Mohammad Sohail, Chief Executive Officer (CEO) of Topline Securities in a tweet.

According to published reports, the subscription amount for Sukuk bonds amounted to $3 billion for tenors of five, tenors

According to the paper, Pakistan accepts $300 million in five-year bonds at 5.875 percent, $400 million in ten-year bonds at 7.125 percent, and $300 million in 30-year bonds at 8.450 percent.

According to a 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 negotiating the sale, which is anticipated to go live later on Tuesday.

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

Pakistan provided initial price advice of 6 percent -6.125 percent for a tranche due in 2026, approximately 7.375 percent for notes maturing in 2031, and around 8.75 percent for a paper due in 2051, according to a document from one of the deal’s banks, according to the report.

According to the report, the March transaction’s five-year tranche debuted at 6%, the 10-year paper at 7.375%, and the 30-year notes at 8.875%. Pakistan is in dire need of money to meet the expenditure for the financial year 2021-22.