Pakistan upsizes Eurobond to $750m as investors snap up additional $250m offering

Pakistan has expanded its latest Eurobond issuance to $750 million after placing an additional $250 million with global institutional investors through the exercise of a greenshoe option, reflecting robust demand during the country’s return to international capital markets after a four-year gap.

The sovereign bond was initially launched at $500 million under the government’s Global Medium-Term Note (GMTN) programme, marking Pakistan’s first Eurobond transaction since 2022 and a key step in restoring regular access to external financing channels.

Officials said the upsizing of the issuance is expected to improve liquidity across Pakistan’s sovereign yield curve and reinforce investor participation in the country’s debt instruments, while also providing a pricing reference point for future international fundraising under the GMTN framework.

According to Khurram Schehzad, the strong response from investors signals renewed confidence in Pakistan’s economic direction despite prevailing global uncertainties. He added that the successful placement reflects improving macroeconomic indicators and stabilising financial conditions.

Authorities noted that the proceeds from the Eurobond will be used to support Pakistan’s external financing requirements and bolster foreign exchange reserves, strengthening the country’s capacity to manage upcoming debt obligations.

The government also highlighted the timely repayment of $1.3 billion in Eurobond maturities in recent months as a factor that helped improve investor sentiment and restore credibility in international debt markets.

Preparations are currently underway to appoint financial advisors for upcoming international fundraising initiatives, including future issuances under the GMTN programme as well as planned sovereign Sukuk offerings. Work on the proposed Panda Bond initiative is also continuing as part of efforts to diversify funding sources.

Pakistan’s renewed access to global capital markets comes against the backdrop of easing energy prices and gradual macroeconomic stabilisation, conditions that have contributed to improving the country’s risk profile among international investors.