Pakistan will issue bonds worth $1 billion in phases in the Chinese capital market. Initially, concept clearance has been approved for the issuance of Panda bonds valued at $250 million.
According to official documents, Pakistan was looking to raise an equivalent amount of $250 million from China's interbank bond market. The country was looking to target a total of $1 billion through the Panda bond programme in multiple phases. Due to Pakistan’s current credit rating, credit enhancement guarantees are required.
Requests for guarantees have been submitted to the Asian Development Bank and the Asian Infrastructure Investment Bank. The ADB will provide a guarantee of $160 million, while the AIIB will cover $125 million.
Documents showed that, following the guarantee, the bond is expected to receive a AAA rating in China. The government has planned to issue the Panda bond before December 2025.
According to the Ministry of Finance, the launch of the first Panda Bond will mark a milestone, offering Pakistan access to China’s bond market.
