Pakistan to issue $250 million Panda bonds within 10 days as China grants approval

Finance Minister Muhammad Aurangzeb informed the National Assembly Standing Committee on Finance that Pakistan had received final regulatory approval from China for the issuance of Panda bonds and planned to raise $250 million within the next 10 days.

Briefing the committee on the economy and implementation of International Monetary Fund targets, the finance minister said the Chinese approval was the last requirement before launching the bond issuance.

“We are going to issue $250 million worth of Panda bonds in the next 10 days,” Aurangzeb told the committee.

The government had earlier planned to launch the Panda bonds in December last year but the issuance was delayed pending regulatory clearances.

To meet financing requirements during the delay, Pakistan secured $750 million through a private placement arranged by Standard Chartered Bank against Eurobonds.

Last month, Pakistan returned to international financial markets after four years through the issuance of $500 million in Eurobonds under the government’s Global Medium-Term Note programme.

The issue was later increased to $750 million after the government exercised a greenshoe option and placed an additional $250 million with global institutional investors following higher-than-expected demand.