List of eurobonds issued by Pakistan

Last updated

A eurobond is an international sovereign bond issued by the Government of Pakistan. As of April 2024, the total outstanding sovereign eurobonds of Pakistan stood at $5.8 billion. [1]

Contents

History

Pakistan issued its first eurobond in 1994. [2] [3]

In February 2004, a consortium led by ABN AMRO, Deutsche Bank, and JPMorgan arranged a $500 million five-year fixed-rate bond for the government, issued at par with a 6.75 percent coupon. [4]

In March 2006, the Government of Pakistan selected Citigroup, Deutsche Bank, and JPMorgan to manage a new international bond issuance valued at $500 million. [4]

In May 2021, Water and Power Development Authority, an organization administered by the Government of Pakistan, issued $500 million eurobond at a coupon rate of 7.5 percent to fund the construction of Diamer-Bhasha Dam and Mohmand Dam. [5]

List

Bond Issuance Details
Issued amountCouponTenorDateStatusReference(s)
150 million11.5 percent5 years1994Tenor completed [6]
500 million6.75 percent5 years2004Tenor completed [7]
300 million7.875 percent30 years30 March 2006Due in March 2036 [8]
500 million7.125 percent10 years30 March 2006Tenor completed [9] [10]
750 million6.875 percent10 yearsMay 2007Tenor completed [11]
1 billion8.25 percent10 years8 April 2014Tenor completed [12] [13]
500 million8.25 percent10 years24 September 2015Due in September 2025 [12] [14]
1.5 billion6.875 percent10 years5 December 2017Due in December 2027 [15]
1 billion5.875 percent5 years8 April 2021Due in April 2026 [16]
1 billion7.375 percent10 years8 April 2021Due in April 2031 [17]
500 million8.875 percent30 years8 April 2021Due in April 2051 [17]
300 million5.875 percent5 years7 July 2021Due in July 2026 [16] [8]
400 million7.375 percent10 years7 July 2021Due in July 2031 [16] [8]
300 million8.875 percent30 years7 July 2021Due in July 2051 [16] [8]

Related Research Articles

<span class="mw-page-title-main">Economy of Pakistan</span>

The economy of Pakistan is categorized as a developing economy. It ranks as the 24th-largest based on GDP using purchasing power parity (PPP) and the 46th largest in terms of nominal GDP. With a population of 241.5 million people as of 2023, Pakistan's position at per capita income ranks 161st by GDP (nominal) and 138th by GDP (PPP) according to the International Monetary Fund (IMF).

<span class="mw-page-title-main">Bond (finance)</span> Instrument of indebtedness

In finance, a bond is a type of security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to provide cash flow to the creditor. The timing and the amount of cash flow provided varies, depending on the economic value that is emphasized upon, thus giving rise to different types of bonds. The interest is usually payable at fixed intervals: semiannual, annual, and less often at other periods. Thus, a bond is a form of loan or IOU. Bonds provide the borrower with external funds to finance long-term investments or, in the case of government bonds, to finance current expenditure.

<span class="mw-page-title-main">Government bond</span> Bond issued by a government

A government bond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic interest, called coupon payments, and to repay the face value on the maturity date.

A eurobond is an international bond that is denominated in a currency not native to the country where it is issued. They are also called external bonds. They are usually categorised according to the currency in which they are issued: eurodollar, euroyen, and so on. The name became somewhat misleading with the advent of the euro currency in 1999; eurobonds were created in the 1960s, before the euro existed, and thus the etymology is to "European bonds" rather than "bonds denominated in the Euro currency".

<span class="mw-page-title-main">Sukuk</span> Financial instruments in Islamic law

Sukuk is the Arabic name for financial certificates, also commonly referred to as "sharia compliant" bonds. Sukuk are defined by the AAOIFI as "securities of equal denomination representing individual ownership interests in a portfolio of eligible existing or future assets." The Fiqh academy of the OIC legitimized the use of sukuk in February 1988.

The bond market is a financial market in which participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills, and so on for public and private expenditures. The bond market has largely been dominated by the United States, which accounts for about 39% of the market. As of 2021, the size of the bond market is estimated to be at $119 trillion worldwide and $46 trillion for the US market, according to the Securities Industry and Financial Markets Association (SIFMA).

Gilt-edged securities, also referred to as gilts, are bonds issued by the UK Government. The term is of British origin, and then referred to the debt securities issued by the Bank of England on behalf of His Majesty's Treasury, whose paper certificates had a gilt edge, hence the name.

<span class="mw-page-title-main">Hub Power Company</span> Electric power company in Pakistan

The Hub Power Company Limited, colloquially known as Hubco, is a Pakistani power company based in Karachi, Sindh. It was the first independent power producer (IPP) to establish in Pakistan and as of 2024 is the largest IPP with a combined installed power generation capacity of 3,581 MW. The revenue of the company is United States Dollars denominated.

Diamer-Bhasha Dam is a concreted-filled gravity dam, in the preliminary stages of construction, on the River Indus between Kohistan district in Khyber Pakhtunkhwa and Diamer district in Gilgit Baltistan, Pakistan administered Kashmir. Its foundation stone was laid by the then Prime Minister of Pakistan in 1998. The dam site is situated near a place called "Bhasha", hence the name which is 40 km downstream of Chilas town and 315 km from Tarbela Dam. The eight million acre feet (MAF) reservoir with 272-metre height will be the tallest roller compact concrete (RCC) dam in the world.

<span class="mw-page-title-main">Wateen</span> Telecommunication company

Wateen Telecom is a converged communication services provider based in Lahore, Pakistan, and was a sister concern of Warid Telecom. The company was incorporated in 2005 and began its operations in 2007 with the deployment of the largest fibre optic network in the country.

<span class="mw-page-title-main">Renaissance Capital</span> Russian investment bank

Renaissance Capital is an emerging and frontier markets focused investment bank founded in 1995 in Russia. The firm has offices in Moscow, London, New York, Lagos, Nairobi, Cairo and Nicosia.

Eurobonds or stability bonds were proposed government bonds to be issued in euros jointly by the European Union's 19 eurozone states. The idea was first raised by the Barroso European Commission in 2011 during the 2009–2012 European sovereign debt crisis. Eurobonds would be debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to the eurozone bloc altogether, which then forwards the money to individual governments. The proposal was floated again in 2020 as a potential response to the impacts of the COVID-19 pandemic in Europe, leading such debt issue to be dubbed "corona bonds".

<span class="mw-page-title-main">Luxembourg Stock Exchange</span> Stock exchange located in Luxembourg

The Luxembourg Stock Exchange, LuxSE is based in Luxembourg City at 35A boulevard Joseph II.

<span class="mw-page-title-main">Guaranty Trust Holding Company PLC</span> Multinational financial services group

Guaranty Trust Holding Company PLC also known as GTCO PLC is a multinational financial services group, that offers retail and investment banking, pension management, asset management and payments services, headquartered in Victoria Island, Lagos, Nigeria. GTCO Plc was created in July 2021 following the corporate reorganization of Guaranty Trust Bank PLC into a Holding Company.

<span class="mw-page-title-main">WorldCall</span>

WorldCall Telecom Limited is a Pakistani telecommunication and multimedia service provider based in Lahore, Pakistan. It is listed on the Pakistan Stock Exchange.

<span class="mw-page-title-main">Greylock Capital Management</span>

Greylock Capital Management, LLC is a U.S. Securities and Exchange Commission registered alternative investment adviser that invests globally in high yield, undervalued, and distressed assets worldwide, particularly in emerging and frontier markets. The firm was founded in 2004 by Hans Humes from a portfolio of emerging market assets managed by Humes while at Van Eck Global. AJ Mediratta joined the firm in 2008 from Bear Stearns and serves as its president.

<span class="mw-page-title-main">Maple Leaf Cement</span> Pakistani building materials company

Maple Leaf Cement is a Pakistani cement manufacturer based in Lahore. It is the fifth-largest cement manufacturer in Pakistan after Lucky Cement, DG Cement, Bestway Cement, and Fauji Cement.

Russia defaulted on part of its foreign currency denominated debt on 27 June 2022, because of funds being stuck in Euroclear. This was its first such default since 1918, back then it was just ruble-denominated bonds, not foreign currency debt. Before that, on 2 June, Russia defaulted on the 30-day interest, incorrectly not counting interest for the grace period, but a failure to pay $1.9 million was not sufficient to trigger a cross-default across other instruments, because the minimum threshold is an amount of at least $75 million, according to documents for other Russian eurobonds. The default occurred due to technicalities as the payment in dollars was impossible due to the sanctions by US and EU authorities, but did not mark an actual lack of capability to pay its debts.

<span class="mw-page-title-main">Pakistani economic crisis (2022–present)</span> 2022-2024 economic crisis in Pakistan

Pakistan has experienced an economic crisis as part of the 2022 political unrest. It has caused severe economic challenges for months due to which food, gas and oil prices have risen.

References

  1. ↑ "SBP Working Paper Series" (PDF).
  2. ↑ "Pakistan launches Eurobond issue - UPI Archives". UPI.
  3. ↑ "MEED | PAKISTAN: First Eurobond issue launched".
  4. 1 2 "Pakistan mandates three for new Eurobond". FinanceAsia.
  5. ↑ "PM stresses on the need for long-term planning for Pakistan". The Express Tribune. 31 May 2021.
  6. ↑ Hargrove, Kenny (28 July 1996). "THE APPEAL OF PAKISTANI BONDS". Washington Post .
  7. ↑ Aftab, Muhammad (23 February 2004). "Pakistan: Eurobonds Come Under Criticism". Arab News .
  8. 1 2 3 4 Jamal, Nasir (2 October 2021). "Govt mulling when to float global bond to raise fresh debt". DAWN.COM.
  9. ↑ "Pakistan to pay $517.81mln against Eurobond on March 31". The News International .
  10. ↑ Kiani, Khaleeq (28 March 2016). "$500m payment to Eurobond investors authorised". DAWN.COM.
  11. ↑ "$750 million accepted for Eurobond at 6.875 percent: Prime Minister". Business Recorder . 25 May 2007.
  12. 1 2 "Pakistan makes successful return to the bond market". The Banker .
  13. ↑ "Pakistan repays $1 bln in Eurobonds, says central bank". Reuters .
  14. ↑ "Expensive Eurobond issue has no early return clause". The Express Tribune. 22 December 2016.
  15. ↑ "Pakistan raises US $2.5 bn from sukuk, Eurobond sales, sees solid demand". Daily Mirror.
  16. 1 2 3 4 Jamal, Nasir (7 July 2021). "Pakistan raises another $1bn through Eurobond issued in March". DAWN.COM.
  17. 1 2 "Eurobond transaction". DAWN.COM. 2 April 2021.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.