Overview
- Pakistan, which completed the sale Thursday in Beijing, issued a three-year RMB 1.75 billion bond at a 2.5% coupon as its first renminbi sovereign deal.
- Investor orders reached RMB 8.8 billion, more than five times the offer, and even topped the full RMB 7.2 billion programme size.
- The Asian Development Bank and the Asian Infrastructure Investment Bank provided partial guarantees that helped the bond win a domestic AAA rating, according to ADB.
- Officials labeled it a Sustainable Panda Bond, with proceeds directed to water supply, power reliability and efficiency, and health projects.
- Panda bonds let foreign issuers tap China’s onshore market, giving Pakistan a new funding channel and a deeper link to Chinese investors as it seeks to diversify beyond dollar debt.