Pakistan raised $3 billion through an international Eurobond sale that attracted nearly $6 billion in investor orders, according to the London Stock Exchange.
The transaction was divided into two bonds with different repayment periods.
The first raised $1.75 billion, with a maturity of five and a half years and an annual coupon rate of 7.50%. The second raised $1.25 billion for ten years, with a coupon rate of 7.90%.
Together, the bonds provided $3 billion in financing. The nearly $6 billion order book means investors expressed interest in buying almost twice the amount offered; it does not mean Pakistan received $6 billion.
Eurobonds allow governments to borrow money from international investors. For Pakistan, the issuance provides another source of foreign currency financing alongside loans from international institutions and other lenders.
The strong level of orders indicates substantial investor interest in the transaction. However, borrowing costs are equally important because the government must pay interest and eventually repay the principal.
Splitting the borrowing into two maturities also means the entire $3 billion will not fall due at the same time.
The transaction formed part of Pakistan’s renewed Global Medium-Term Note programme, according to the exchange.
Access to international bond markets can help diversify government financing, but it also creates obligations in foreign currency. The affordability of those repayments depends on future government finances and Pakistan’s ability to earn or obtain dollars.
The immediate result is clear: Pakistan secured $3 billion in international borrowing, with demand exceeding the amount available and repayment obligations spread across two periods.