Pakistan begins process to secure $2bn through Eurobonds

• Govt advised to hold roadshows in London, Washington and Gulf.
• Adviser says move follows sovereign credit-rating upgrades.
• Eurobond size to be ascertained based on global interest: sources.

ISLAMABAD: Pakistan has initiated the process to launch a $2 billion Eurobond with five-and-10-year tenors, following improved credit ratings from international agencies.

Islamabad plans to generate a few billion dollars through medium- to long-term borrowing at the Secured Overnight Financing Rate (SOFR) plus the country’s risk premium, with the intention of returning bilateral loan deposits either to China or Saudi Arabia, for which the country’s top leadership has had to make formal requests after a pause of a few months during the course of every financial year, according to The News.

“The timing of launching this process is very important as good news emerged on the geopolitical level on account of the strengthening of Makkah Defence Agreement, a favourable decision on the Indus Waters Treaty and improved credit ratings from two international rating agencies. The Financial Adviser selected by Pakistan has undertaken its homework and advised the country to launch the process for conducting roadshows, probably in London, Washington and the Gulf region,” top official sources in the Finance Division confirmed while talking to The News on Tuesday.

Khurram Schehzad, Adviser to the Finance Ministry, said in his X post that the Ministry of Finance and Revenue had launched the process for a US dollar benchmark dual-tranche Eurobond offering across long five-year and 10-year tenors, subject to market conditions.

“The transaction follows successive sovereign credit-rating upgrades, stronger macroeconomic fundamentals and improved investor confidence — marking another important step in Pakistan’s renewed access to international capital markets,” he added.

The official sources said in background discussions that the exact size of the Eurobond would be ascertained after taking into account the interest shown by international investors.

However, the Ministry of Finance, in its budget documents for fiscal year 2026-27, had mentioned that it would launch $2 billion in international bonds during the current fiscal year.

Citi, Deutsche Bank, Emirates NBD Capital, MUFG and Standard Chartered have been appointed as joint lead managers and bookrunners for the upcoming transaction by Pakistan.

Pakistan returned to international capital markets in April 2026 after a four-year hiatus, raising $750 million through a three-year Eurobond priced at a 6.975% yield.