Move follows successful $750 million Eurobond issuance as Islamabad plans structured access to international capital markets over next three years
ISLAMABAD: A day after raising $750 million through a three-year Eurobond, the government has initiated efforts to secure international financial partners to support its future borrowing strategy, inviting proposals from global consortiums to manage and underwrite transactions in capital markets over the next three years.
Officials said the selected institutions would act as underwriters, lead managers and bookrunners, with contracts awarded based on the most favorable borrowing terms, including lower yields, competitive coupon rates and overall cost efficiency. The strategy aims to provide flexibility for authorities to tap international markets in line with evolving external financing requirements.
Under the plan, three separate consortiums will be appointed to oversee different funding streams. These include the renewal of Pakistan’s Global Medium-Term Note Programme and its Sukuk Trust Certificate Issuance Programme for another three-year cycle.
The frameworks are designed to support a range of financial instruments, including Eurobonds as well as ESG, green, gender and sustainability-linked bonds. Authorities also plan to issue international Sukuk and rupee-denominated bonds settled in US dollars.
The recently issued $750 million Eurobond, led by a consortium headed by Standard Chartered Bank, carries a maturity of April 2029. Officials said the proceeds will partly be used to refinance obligations to the United Arab Emirates at comparable rates.
Khurram Schehzad, adviser to the finance minister, said the issuance is part of a broader roadmap aimed at strengthening Pakistan’s external financing position through diversified capital market instruments.
“This exercise is about selecting partners across multiple funding instruments,” he said, adding that decisions on market access would depend on financing needs and prevailing global conditions.
Authorities noted that the timing and size of future issuances would be guided by market dynamics and recommendations from appointed transaction advisers. The selected firms will handle end-to-end execution, including structuring deals, pricing, investor engagement, roadshows and allocation.
The first consortium, comprising up to five conventional international financial institutions, will focus on Eurobond issuances to ensure broad investor participation and strong demand.
A second consortium, also consisting of up to five institutions but including at least one Islamic financial entity, will manage international Sukuk offerings.
The third group, limited to up to three institutions, will oversee the issuance of rupee-denominated bonds settled in US dollars under the GMTN framework.
Interested institutions have been invited to submit both technical and financial proposals for each category, with bids due by May 25. The submissions will be opened the same day as part of a competitive selection process.
About The Author
