Pakistan has issued its first sovereign panda bond in China’s interbank bond market, raising RMB1.75 billion (USD260 million) and becoming the first South Asian country to issue such a bond.
Fangda Partners, Pakistan law firm Ahmed & Qazi, Global Law Office, and White & Case provided legal support.
The issuance came ahead of the 75th anniversary of diplomatic ties between China and Pakistan, and also marked Pakistan’s first sovereign bond offering in offshore capital markets. The three-year bond carried a coupon rate of 2.5%, and was more than five times oversubscribed.
For the issuer, Fangda Partners acted as PRC legal counsel, led by partner Christine Chen. Ahmed & Qazi advised on Pakistani law, with partner Nazif Ahmed leading the team.
The Asian Infrastructure Investment Bank and the Asian Development Bank provided guarantees for the bond issuance. Global Law Office acted as PRC legal counsel to the guarantors, led by partner Zhu Li, while White & Case provided offshore legal counsel to the guarantors.
Proceeds from the issuance will support green and sustainable infrastructure projects in Pakistan across sectors including water, energy and healthcare, strengthening the country’s engagement with international capital markets.
