ISLAMABAD, April 11: Pakistan will shortly make another issue of global dollar bonds to raise over $700 million funds for general budgetary support, according to an official statement.

“Pakistan will return to the international financial market with a Rule 144A/Regulations dollar bond issue for general budgetary support,” announced the ministry of finance here on Wednesday. This rule makes the securities eligible for purchase and trade by institutional US investors.

It said the securities will not be and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act, the statement added.

The statement is a pre-requisite under the US laws before floating bonds in New York where Pakistan plans to issue its sovereign bonds worth $500 million or above according to market conditions.

A team comprising Adviser to the prime minister on Finance Dr Salman Shah, secretary finance and economic adviser to the finance ministry have already left for the United State to attend spring meetings of the International Monetary Fund (IMF) and the World Bank and to try to trigger interest for the Pakistani paper.

Finance Ministry has selected three banks as lead managers for the transactions, including Citibank, Deutsche Bank and HSBC Bank. The government plans to float these bonds in New York most probably in May. The finance ministry has been holding continuous meetings with these fund managers on the subject over the last few weeks.

This will be Pakistan’s fourth international bond in the last five years. Last year, Pakistan sold $800 million in a dual-tranche sovereign bond, comprising $500 million in a 10-year issue and $300 million in 30-year paper. The proposed new sovereign bond is likely to be for 15 and 20 years maturity period.

In 2004 Pakistan raised $500 million through five-year sovereign Eurobond and in 2005 it issued $600 million five-year Sukuk (an Islamic bond) against which it had to pledge certain sections of the Motorway project.