Pakistan is targeting January to issue its first panda bond tranche, part of a planned programme of up to $1 billion, the Ministry of Finance said on Friday, as Islamabad seeks to diversify funding sources and tap China’s onshore debt market.
dollars), three-year Panda bond in China's interbank bond market. Panda bonds are yuan-denominated debts sold by overseas issuers to meet financing demand.
This PandaBond issuance also represents the second largest Panda Bond issuance to date from an Asean Issuer and achieved the lowest coupon rate on record ever ...
The Panda... This Panda Bond issuance also represents the second largest Panda Bond issuance to date from an Asean Issuer and achieved the lowest coupon rate on record ever secured by an ASEAN issuer.
"We will encourage and support more qualified overseas institutions to issue panda bonds within the country," the central bank told China Daily, as it aims to strengthen the Chinese currency's function of financing.
Sharjah first entered the China bond market in February 2018, when it issued a Rmb 2 billion panda bond—the first panda deal by a Middle Eastern issuer—with a coupon of 5.8 % and maturity in 2021.
Pakistan is preparing two plans to fetch $750 million (approx Rs213 billion) in inflows within the next few weeks through the launch of PandaBond and raising commercial financing with the help of international banks, The News has learnt.
This offering comprises a three-year bond of RMB 900 million with a coupon rate of 2.35% and a five-year bond of RMB 300 million with a coupon rate of 2.50% (which marks the first five-year sustainability-linked Panda bond in the market).