Pakistan has issued its maiden Panda bond in China, raising the equivalent of USD 250 million and marking its debut in China’s onshore capital market. A Panda bond is a renminbi (RMB)-denominated bond sold by a foreign issuer directly to investors in China’s domestic market.
The inaugural issuance was a three-year, fixed-rate instrument carrying a 2.5% coupon, according to Khurram Schehzad, advisor to Finance Minister Muhammad Aurangzeb. The transaction sized RMB 1.75 billion (about USD 250 million) and drew strong demand: orders topped RMB 8.8 billion (roughly USD 1.26 billion), an oversubscription of more than five times.
Schehzad noted the demand for the first tranche alone exceeded Pakistan’s planned Panda bond programme of RMB 7.2 billion (about USD 1 billion), a sign of rising investor confidence in Pakistan’s economic outlook and reform efforts. He described the deal as more than a financing operation, calling it Pakistan’s formal entry into China’s capital markets and a boost to Pakistan–China financial cooperation.
The issuance was supported by the Asian Development Bank and the Asian Infrastructure Investment Bank. Finance Minister Muhammad Aurangzeb traveled to China to attend the bond issuance ceremony.
The Panda bond follows other recent financing moves by Islamabad: a Eurobond sale last month that raised USD 750 million, additional USD 3 billion in deposits from Saudi Arabia, the return of USD 3.4 billion to the UAE, and USD 1.3 billion disbursed by the International Monetary Fund under two ongoing programs. Together, these transactions form part of Pakistan’s broader effort to stabilize finances and restore investor confidence.
