Pakistan on Tuesday successfully raised $1 billion through the Euro bonds launched in March in the international market. Pakistan received $3 billion in offers.

The bonds were issued for 5,10 and 30 years. A sum of $300 million was approved for 5-year bonds at 5.8%. Around $400 million has been raised from the 10-year bonds at 7.18%.

Pakistan has accepted a profit rate of 8.4% for the next 30 years, With this, the country will see an increase of $1 billion in foreign exchange reserves.

Read More: Govt likely to float $2 bn Eurobonds in coming days

Pakistan floated its first bond in the international market in 1994 and then in 1997. The first bond was launched on Dec 22, 1994, at 11.5 per cent with the amount raised being $150 m. This was followed by $160 m and $300 m bonds in Feb-May, 1997 at 6 per cent and Libor + 395bps, respectively.

Later due to international restriction after nuclear tests, Pakistan was unable to tap the international market. However, Pakistan reverted back to the international market in 2004 as better macroeconomic indicators resulted in improved ratings.

In 2004-05, Pakistan issued a five year Eurobond and raised $500 m at a rate of 6.75 per cent. In 2005-06, Pakistan issued $600 m in five-year Sukuk issuance at a rental rate of 6 m LIBOR plus 220 basis points. In 2006-07, Pakistan issued a total of $800 m by issuing two Eurobonds worth $500 m (7.125 per cent, 10 year) and $300 m (7.875 per cent, 30 year) eachے،


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