ISLAMABAD – Five Chinese firms are in line to support Pakistan for issuance of $300 Panda Bonds.
The Asian nation received bids from five Chinese firms to help it raise funds via Panda bonds as Islamabad pushes ahead with plans to return to global capital markets following progress toward shoring up its finances.
A statement issued by Finance Ministry said these firms submitted bids to assist Pakistan with its Panda Bonds issuance. The bids, which include proposals from three Chinese law firms and two credit agencies, respond to the government’s call for assistance in launching bonds on the Chinese market.
Finance minister previously mentioned that the bond issue could be valued at up to $300 million. Besides Chinese firms, two Pakistani firms have also applied as the government is currently reviewing all bids and will make a decision soon.
The country’s Finance czar Muhammad Aurangzeb, who was in China last week, also discussed Panda Bonds. He mentioned that Pakistan plans to raise up to $1 billion through international bonds in the 2025/26 fiscal year, with up to $300 million expected from the Chinese market.
Aurangzeb stated that the initial bond issue would target the Chinese panda bond market, aiming to raise the equivalent of $250-300 million in yuan. Aurangzeb also noted that once Pakistan’s investment ratings improve, the ministry intends to explore European and other international markets.
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