Pakistan issues $3 billion in Eurobonds to access global markets

Pakistan has successfully issued $3 billion in Eurobonds, marking a significant return to global financial markets. The issuance consisted of two tranches: a 5.5-year bond raising $1.75 billion with a 7.50% coupon rate, and a 10-year bond raising $1.25 billion with a 7.90% coupon rate.

According to the Ministry of Finance, the demand was substantial, with the order book reaching twice the size of the issuance. Investors from Asia, the Middle East, Europe, and the United States participated in the offering. Federal Finance Minister Muhammad Aurangzeb noted that the successful issuance reflects improved global confidence in Pakistan's economy and its credit rating, which has seen three upgrades since April 2025.

The issuance is part of a Global Medium-Term Note (GMTN) strategy aimed at sovereign debt management. This approach focuses on increasing maturities and reducing rollover risks through long-term financing rather than short-term borrowing.