- Chinese regulatory approvals expected soon: ministry
- Ministry says issuance part of $1bn Panda Bond Programme.
- Preparation underway for issuing Panda Series II: ministry.
Pakistan is planning to issue the inaugural Panda Bond tranche in January, with the expectation of raising $250 million, the finance ministry said on Friday.
The ministry confirmed the development in a statement after Finance Minister Muhammad Aurangzeb chaired a meeting to review progress on the bond’s issuance.
During the meeting at the Finance Division, the minister emphasised that Pakistan’s entry into the Chinese onshore bond market was being pursued as “a structured and programmatic financing strategy”, aligned with prudent debt management objectives.
Aurangzeb expressed satisfaction with the progress achieved, reaffirming the government’s commitment to prudent, market-based financing.
He noted that the inaugural Panda Bond will further support Pakistan’s medium-term debt sustainability and diversification of funding sources.
During the meeting, it was said that final regulatory approvals from the relevant Chinese authorities were expected soon, with plans to launch the bond in January.
Envisaged at approximately $1 billion, the inaugural tranche has been planned at an equivalent of $250 million.
“As part of the $1 billion Panda Bond Programme, preparatory work for subsequent issuances under ‘Panda Series II’ is already underway, and the Chinese regulatory authorities have been fully apprised,” read the statement.
During the meeting, the minister was briefed on the status of approvals, investor engagement, and regulatory processes for the upcoming inaugural issue.
It was reported that approvals from multilateral partners have been secured, and engagement with Chinese institutional investors has been constructive.
The meeting was apprised that investor sentiment remained strong, with broad-based interest and “encouraging early feedback from a diversified investor base”.
The finance minister emphasised that the investor interest reflected strengthening confidence in Pakistan’s macroeconomic stabilisation, improved policy and reform framework, and a positive medium-term outlook.
Further, participants of the meeting highlighted that prevailing market conditions remained supportive, with broad-based investor interest and orderly market functioning.
Plans to launch the bond series were announced in January, with the finance minister saying the move aimed to strengthen the country’s presence in China’s capital markets.
“Pakistan plans to raise approximately $200 million from Chinese investors through the issuance of the Panda Bond,” Aurangzeb said in an interview with a Hong Kong news channel on January 19.
The minister added that the move was part of the government’s strategy to transition the country’s economy towards export-driven growth, with a focus on achieving sustainability in the country’s balance of payments.
