Pakistan launches dual-tranche Eurobond offering

ISLAMABAD: Pakistan on Tuesday launched the process for a US dollar-denominated benchmark dual-tranche Eurobond offering with five-year and 10-year tenors, as the government seeks to deepen its return to international capital markets following recent sovereign rating upgrades.

Adviser to the Finance Minister Khurram Schehzad said in a post on X that the proposed transaction was subject to market conditions and represented another step in Pakistan’s renewed access to international capital markets.

The size of the proposed issuance, pricing and final yields are yet to be announced and will depend on investor demand and prevailing market conditions. Mr Schehzad said the transaction followed improvements in Pakistan’s sovereign credit ratings and macroeconomic indicators and reflected the country’s growing engagement with international investors.

The latest move comes less than five months after Pakistan returned to the international bond market following a four-year absence.

Minister’s aide calls it another step in country’s renewed access to global capital markets

In April, the government initially raised $500 million through a three-year Eurobond under its Global Medium-Term Note (GMTN) Programme at a coupon of 6.975pc. The issue was subsequently increased to $750m through a $250m green-shoe option after stronger-than-expected investor demand. The bond matures in April 2029.

Pakistan has also repaid a $1.4 billion Eurobond that matured in April, allowing the government to re-establish a pricing benchmark in international debt markets after several years of relying heavily on multilateral, bilateral and commercial financing.

On Tuesday, S&P also assigned a ‘B’ rating to Pakistan’s GMTN programme and the proposed benchmark US dollar notes, in line with the sovereign rating.

Fitch Ratings also assigned the GMTN programme a ‘B-’ rating with a Recovery Rating of ‘RR4’, in line with the country’s long-term sovereign rating.

The latest offering extends the maturity profile beyond the three-year tenor used in April, with the proposed five- and 10-year tranches providing a test of investors’ willingness to hold Pakistani sovereign debt for longer periods.

Published in Dawn, September 2nd, 2026