Pakistan issues $500 million Euro bond

Published September 25, 2015
Pakistan's inflation has fallen to its lowest in 12 years and foreign reserves have risen, largely thanks to low international oil prices, but foreign investment remains low. ─ APP/File
Pakistan's inflation has fallen to its lowest in 12 years and foreign reserves have risen, largely thanks to low international oil prices, but foreign investment remains low. ─ APP/File

KARACHI: Pakistan has issued a new 10-year bond of $500 million in the international Euro bond market, the finance ministry said Friday, at a coupon rate of 8.25 per cent.

A finance ministry team comprising Finance Secretary Waqar Masood Khan and Governor State Bank of Pakistan Ashraf Wathra held road shows to launch the bond in London, Los Angeles, Boston and New York. The pricing of the bond was held on September 24, the ministry said.

The finance ministry said the issue was twice over subscribed.

"The economic downturn in China and uncertainty created by Fed decision has punctuated the weak market conditions forcing cancellation of planned issues by several issuers having strong credit ratings," the ministry said in a statement.

"Under the circumstances, the finance minister with the approval of the prime minister, decided that it would be prudent to restrict the issue to the intended and announced level of $500 million in order to cover the forthcoming maturity in March 2016 of a bond issued in 2006," the ministry said.

Pakistan's inflation has fallen to its lowest in 12 years and foreign reserves have risen, largely thanks to low international oil prices, but foreign investment remains low.

Little progress has been made in improving tax collection or reforming the energy sector since Prime Minister Nawaz Sharif came to power in 2013, and the country remains vulnerable to price shocks once the global oil market recovers.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Trump’s folly
Updated 13 Feb, 2025

Trump’s folly

This latest pronouncement only reinforces the fears of those who see the plan as a blueprint for ethnic cleansing.
Corruption ranking
13 Feb, 2025

Corruption ranking

IT comes as little surprise. Transparency International’s Corruption Perceptions Index for 2024, unveiled on...
Support from remittances
13 Feb, 2025

Support from remittances

EVEN though workers’ remittances dipped, albeit negligibly, in January on a month-over-month basis, the earnings...
Ill omens
Updated 12 Feb, 2025

Ill omens

One wonders whether institutional leadership realises the long-term ramifications of the ongoing "remaking" of judiciary.
Sunken dreams
12 Feb, 2025

Sunken dreams

ANOTHER tragedy has struck Pakistani migrants seeking a better future. A boat capsizing off the Libyan coast has ...
Hate in India
12 Feb, 2025

Hate in India

HISTORY shows that rulers use hate speech to provoke hate crimes and ‘othering’ among communities. Indian Prime...