Pakistan Secures $3 Billion Through Landmark Eurobond Transaction: Finance Minister Muhammad Aurangzeb
ISLAMABAD: Pakistan successfully sold its first International Bond worth $3 billion, according to the Federal Minister for Finance and Revenue Muhammad Aurangzeb.
The Finance Minister said this dual transaction of Eurobonds is Pakistan’s biggest transaction ever, and has got positive external validation from the global rating agencies.
The credit upgrades and the international interest of investors.
Since April last year, Pakistan has achieved three upgrades and had its Eurobond order book at almost double the amount of issued bonds, said Aurangzeb. He explained that the global investor’s enthusiasm in participating in the event, from all Asia, Middle East, Europe and USA, reflects renewed confidence in the economic future of Pakistan.
The minister pointed out that favourable pricing was achieved for both 5 years and 10 years Eurobonds, adding that this $3 billion issue was not a sudden one but part of an overall 3-year Global medium Term Note (GMTN) strategy.
This involves spreading out the sources of external financing and reducing risk.This means spreading out sources of external financing and reducing risk.
The government’s long term strategy is emphasised and Aurangzeb states that the issuance will aim at lengthening maturity profiles in external financing and limit rollover risks. He noted that Pakistan is always working on the diversification of external funding sources by issuing Sukuks, dollar-settled bonds and Panda bonds.
The Finance Minister reiterated the government’s pledge on structural stability and emphasized that the current structural fiscal reform has been moving in the right direction, away from boom and bust cycles in the past, and has raised the tax-to-GDP ratio.