Pakistan waiting regulatory approval from Chinese authorities for launch of Panda Bond
Pakistan is on track to issue its inaugural Panda
Bond, worth $250 million, in January as part of its $1 billion Panda Bond
program. Finance Minister Senator Muhammad Aurangzeb chaired a meeting on
Friday to review the bond issuance progress, with the launch pending final
regulatory approval from Chinese authorities.
At the meeting, officials from the Finance Ministry’s Debt Management Office provided updates on the approval process, investor interest, and regulatory requirements. The inaugural bond has garnered significant attention from Chinese institutional investors, with strong demand and positive feedback from a wide range of potential buyers.
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The Panda Bond issuance is a crucial component
of Pakistan’s broader strategy to diversify its funding sources. The Finance
Minister emphasized that the initiative aligns with the government's goal of
maintaining prudent debt management practices.
Investor confidence has been supported by
Pakistan’s ongoing macroeconomic stabilization and policy reforms, contributing
to a positive outlook for the country’s economy in the medium term, which has
boosted the bond's attractiveness.
Regulatory approvals for the bond are expected by early January, allowing the first tranche to be launched. Talks are already underway for the second series of Panda Bonds, with initial engagement with financial institutions. Pricing for future tranches will be determined based on market conditions as the issuance date approaches.
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Infrastructure Investment Bank reiterates support to Pakistan
The Finance Minister expressed satisfaction with the progress made so far and reaffirmed the government’s commitment to market-based financing, which will strengthen Pakistan’s debt sustainability and improve access to global capital markets.
Source: Profit Pakistan