Pakistan has delayed the $250 million Panda bond issuance in China, originally scheduled for February, after the Ministry of Finance could not complete all the required preparations. This marks the fourth time the issuance plan has been revised in the current fiscal year.
The Panda bonds, denominated in Chinese yuan, would be Pakistan’s first entry into China’s interbank bond market. With a three-year maturity and expected single-digit interest rates, the issuance is aimed at diversifying Pakistan’s funding sources and strengthening its presence in China’s financial sector.
To enhance investor confidence, the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) are expected to provide up to 95% guarantees for the bonds. Officials remain optimistic that, once preparations are complete, the Panda bond issuance in China will proceed successfully next month.
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