Pakistan plans more yuan bond issuances after raising $258 million from debut Panda bond: report

Pakistan plans to raise additional funds from China’s onshore debt markets after successfully launching its first yuan-denominated Panda bond, Finance Minister Muhammad Aurangzeb said, according to a report by Bloomberg.

Speaking in an interview on Friday, Muhammad Aurangzeb said the Panda bond programme was not a one-time transaction and confirmed that Pakistan intended to proceed with further renminbi-denominated issuances.

According to the finance minister, the overall size of Pakistan’s Panda bond programme stands at $1 billion and preparations for the next tranche would begin immediately.

Pakistan raised $258 million through the debut issuance, which officials described as the country’s cheapest foreign-currency bond offering to date.

The debut issuance was oversubscribed more than five times, indicating strong investor demand for the bonds.

Pakistan has also returned to international debt markets this year through a private placement global bond issued last month, marking its first such offering in four years.

Officials said investor confidence had improved after Pakistan implemented economic reforms under programmes with the International Monetary Fund following the country’s near-default crisis in 2023.