Pakistan has started the process for a benchmark US dollar-denominated dual-tranche Eurobond, it was reported on Tuesday.
According to details, the Ministry of Finance said the proposed transaction would comprise five-year and 10-year maturities, subject to prevailing market conditions and investor demand, according to a press release issued.
The size of the transaction, pricing, and final yield were not immediately disclosed.
The offering follows successive improvements in Pakistan’s sovereign credit profile, strengthening macroeconomic indicators, and what the government described as improving investor confidence.
It represents an important test of international investor appetite for Pakistani sovereign debt and could mark the country’s return to global bond markets as it looks to diversify its external financing sources.
Pakistan has made progress under its International Monetary Fund-supported economic reform program, with the government emphasizing fiscal and external discipline and timely servicing of its external debt obligations.
The Finance Ministry recently said Pakistan remained committed to honoring its external obligations, noting that Eurobond repayments were being handled in an orderly manner.
The ministry’s debt management office also lists medium-term debt management strategies and public debt publications as part of the government’s broader framework for managing sovereign borrowing.
A successful issuance would give Pakistan renewed access to international debt markets and could reduce its reliance on bilateral financing and other external funding sources as it works to meet future debt-servicing requirements.
