Pakistan has successfully raised RMB 1.75 billion, equivalent to about US$250 million, through its first-ever Panda Bond issuance in China’s onshore capital market, marking the country’s debut sovereign borrowing in Chinese yuan.
The three-year fixed-rate bond attracted strong investor demand, with total bids exceeding RMB 8.8 billion, or roughly US$1.26 billion, resulting in an oversubscription of more than five times the offered amount.
Demand for the inaugural tranche alone exceeded Pakistan’s entire planned Panda Bond programme size of RMB 7.2 billion, equivalent to US$1 billion.
The bond was priced at a coupon rate of 2.5 percent, reflecting relatively competitive financing terms compared with recent external borrowing costs.
The issuance represents Pakistan’s first RMB-denominated sovereign bond and provides access to China’s domestic capital market, one of the world’s largest funding pools.
The transaction aims to diversify Pakistan’s external financing sources and strengthen financial cooperation with China while supporting the country’s return to international capital markets.
Pakistan has relied largely on multilateral and bilateral financing in recent years, and the Panda Bond programme is expected to serve as an additional funding avenue alongside traditional dollar-denominated borrowing.
The overall program size stands at US$1 billion, with future issuances expected subject to market conditions.
