Pakistan raises record USD 3 billion in largest-ever dual-tranche Eurobond issuance
The Ministry of Finance successfully priced a USD 3 billion dual-tranche Eurobond transaction, drawing nearly USD 6 billion in global investor demand, marking Pakistan's largest-ever international capital market raise in a single deal
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Pakistan executed its largest single international capital market transaction to date on Thursday, September 3, 2026, raising USD 3 billion through a dual-tranche Eurobond sale.
The offering attracted nearly USD 6 billion in orders from institutional investors across Asia, Europe, and the Americas, signaling strong international demand for Pakistani sovereign debt amid macroeconomic stabilization.
What are the terms and pricing details of the USD 3 billion Eurobond?
According to official statement details released by the Ministry of Finance, the transaction was structured across two distinct maturities:
- 5.5-Year Tranche: Raised USD 1.75 billion with a coupon rate of 7.50%.
- 10-Year Tranche: Raised USD 1.25 billion with a coupon rate of 7.90%.
The order book was nearly two times oversubscribed, with substantial investor interest extending into the longer-dated 10-year instrument. The issuance represents the first under Pakistan's renewed Global Medium-Term Note (GMTN) Programme, following the country's inaugural Panda Bond issue and recent sovereign credit-rating upgrades. Joint bookrunners for the transaction included Citi, Deutsche Bank, Emirates NBD, MUFG, and Standard Chartered.
The deal extends the borrowing timeline beyond the USD 750 million three-year Eurobond raised in April 2026, providing a benchmark for longer-term international market access.
How does this transaction support Pakistan's sovereign debt strategy?
Finance Ministry officials described the issuance as a core component of active sovereign liability management rather than a simple addition to national debt. The government aims to utilize long-term, competitively priced global capital to replace shorter-term, higher-cost obligations, extend overall debt maturities, and minimize refinancing and rollover risks.
This international debt management strategy mirrors recent domestic initiatives, where the government executed substantial early retirements of expensive domestic debt prior to maturity.
Officials noted that maintaining fiscal discipline, boosting export competitiveness, and sustaining structural economic reforms remain essential to supporting Pakistan's transition from stabilization to sustainable economic growth. The securities were offered to institutional investors under standard international offering restrictions and were not registered for public sale in the United States.
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