New bond raises about $1bn in world market
NEW YORK: Pakistan issued a new 10-year bond of $500 million in the international Eurobond market on Friday that raised nearly $1 billion, said Finance Minister Ishaq Dar on Saturday.
Speaking in New York, the finance minister said Pakistan went ahead with issuing the bond despite information that the market situation was not favourable and some countries had postponed their bids.
He claimed that Pakistan’s improving economy helped in evoking a good response from the market, even though there were some negative factors.
The coupon rate was 8.25 per cent, equivalent to the rate at which Pakistan issued the same bonds in April last year.
Shows were held for launching the bond in London, Los Angeles and Boston by a team led by Finance Secretary Waqar Masood Khan and the governor of the State Bank of Pakistan, Ashraf Wathra.
The minister led the final show in New York on Wednesday and the pricing of the bond was carried out on Thursday. The investors praised the progress made in stabilising the Pakistani economy and the reforms carried out in the areas of energy, privatisation, tax administration and investment climate.
Mr Dar said that reforms carried out by the PML-N government had helped the country get into “robust shape” from a situation of default at the end of tenure of the PPP-led government.
Meanwhile, the finance minister met US Deputy Treasury Secretary Sarah Bloom Raskin in Washington and discussed with her Pakistan’s economy.
He informed the US official about the decline in inflation and fiscal deficit, enhanced GDP growth and record increase in foreign exchange reserves and home remittances, said a statement.
Mr Dar told Ms Raskin that the successful launch of the $500m Eurobonds reflected the confidence of international investors in Pakistan’s economy.
He reassured the deputy secretary that Pakistan was committed to pursuing reforms in the energy sector.
Deputy Secretary Raskin congratulated Mr Dar on the issuance of the Eurobond. She observed that Pakistan’s economy had potential for enhanced growth.