Pakistan issues first Panda Bond, receives 5 times more investment offers

Pakistan has issued Panda Bond in China’s financial market for the first time in history and the response in the first attempt was much more positive than expected. Bonds worth $250 million or 1.75 billion yuan were offered but investors received offers of 8.8 billion yuan or 5 times the original amount. Due to this huge demand, Pakistan got this capital at a low interest rate of just 2.5%, which is a good deal.

This bond has been issued in Chinese currency Yuan for a period of 3 years. The importance of this success is also greater because China is the world’s second largest capital market and Pakistan has gained access to this market for the first time. Now, new investors from all over the world can join the Pakistani economy in the coming time.

Advisor to the Finance Minister Khurram Shahzad said that Pakistan is moving towards stability after emerging from the crisis and this success is proof that global investors have started to trust Pakistan’s ability to repay its debts. Experts say this development will help improve Pakistan's economic reputation internationally.