Pakistan Launches USD 1 Billion Worth Eurobonds to Stabilise Foreign Exchange Reserves

On the 6th of July 2021, Pakistan launched USD 1 billion worth of Eurobonds with a subscription price worth USD 3 billion for five, ten and thirty years. This issuance comprised USD 300 million in five-year bonds at 5.875%, USD 400 million in 10-year bonds at 7.125%, and USD 300 million in thirty-year bonds at 8.450%.

Why it Matters?

The main aim of this funding is to support Pakistan’s foreign exchange reserves. The Government of Pakistan expects to raise USD 17 billion in the new fiscal year (FY 2021-22) by way of external new loans to repay older debts and maintain foreign exchange reserves at current levels. These longer-term bonds are less expensive and remain a preferred choice of investment due to the longer maturity period they contain,...