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ISLAMABAD: Pakistan on Thursday raised $250 million through its inaugural Panda Bond in China’s capital market at an interest rate of 2.5 per cent with a three-year maturity, the Ministry of Finance (MoF) said.
“Pakistan has successfully completed its inaugural Panda Bond issuance today in China’s onshore capital market, marking the country’s first-ever entry into the world’s second-largest and deepest capital market,” the MoF said in a statement.
The inaugural Panda Bond is a three-year fixed-rate instrument, making it Pakistan’s first-ever RMB-denominated sovereign issuance in China’s onshore capital market, it added.
Finance Minister Muhammad Aurangzeb’s adviser Khurram Schehzad said the landmark Panda Bond issuance of RMB 1.75 billion (equivalent to $250m) attracted overwhelming investor demand of over RMB 8.8 billion, resulting in an oversubscription of more than five times.
