Pakistan has successfully raised $3 billion through a two-tranche Eurobond, marking the country’s biggest international bond transaction in a single issuance, according to the Ministry of Finance.

The transaction attracted nearly $6 billion in orders from institutional investors worldwide, showing strong demand for Pakistan’s sovereign debt. The government described the response as a sign of renewed investor confidence in the country’s financial outlook.

Two bonds issued

Pakistan raised $1.75 billion through a 5.5-year Eurobond carrying a 7.50% coupon. Another $1.25 billion was secured through a 10-year Eurobond with a 7.90% coupon.

Strong interest in the longer-term bond was particularly notable, as investors showed willingness to hold Pakistani debt for a longer period.

Focus on debt management

The issuance is the first under Pakistan’s renewed Global Medium Term Note program following the country’s first Panda Bond and improvements in its sovereign credit profile.

Officials said the strategy is aimed not only at raising funds but also at diversifying financing sources, extending debt maturities and reducing refinancing risks.

Investor confidence grows

The Ministry of Finance said successive credit rating upgrades and renewed access to international markets indicate improving confidence in Pakistan’s economy.

However, officials and analysts will continue to monitor fiscal discipline, structural reforms, exports, investment and productivity, which remain crucial for maintaining investor confidence and managing the country’s debt burden.