ISLAMAMBAD – London Stock Exchange has congratulated Pakistan for its return to international markets after the gap of four years.
In an official tweet it said: “Congratulations to the Islamic Republic of Pakistan for their return to International markets after 4 years”.
“With its triple tranche USD 2.5bn bonds listed on @LSEplc’s International Securities Market, Pakistan joins more than 300 active sovereign bonds raising over USD 3tn,” it added.
Pakistan entered the international capital market after a gap of over three years by successfully raising $2.5 billion through a multi-tranche transaction of Eurobonds.
According to the Finance Division, the transaction of five, ten, and thirty years Eurobonds generated great interest as leading global investors from Asia, Middle East, Europe and the US participated in the global investor calls and the order book.
This is for the first time that Pakistan has adopted a program-based approach with registration of Global Medium-Term Note program. The program will allow Pakistan to tap the market at short notice.
The government intends to make full use of this program and become a regular issuer in the International Capital Markets.
Last month, Pakistan managed to collect $2.5 billion through Eurobonds by offering lucrative interest rates to lenders aimed at strengthening foreign exchange reserves that were under pressure due to mounting external debt payments.
The government has offered 6% interests rate for five-year maturity bonds, 7.375% for ten years and 8.875% for 30-year bonds.
In March, the government has received $4.4 billion loan from the International Monetary Fund (IMF), the World Bank and global capital markets.
It is the first capital market transaction conducted by Pakistan in the last almost three-and-a-half years.
