Pakistan hires banks for three-tranche dollar bond sale

Published March 26, 2021
JPMorgan is one of the banks that Pakistan has hired to arrange investor calls ahead of a triple-tranche sale of US dollar-denominated bonds. —Reuters/File
JPMorgan is one of the banks that Pakistan has hired to arrange investor calls ahead of a triple-tranche sale of US dollar-denominated bonds. —Reuters/File

DUBAI: Pakistan has hired a group of banks to arrange investor calls ahead of a triple-tranche sale of US dollar-denominated bonds, a document showed on Thursday.

Credit Suisse, Deutsche Bank, Emirates NBD Capital, JPMorgan, Standard Chartered and BOC International will hold calls with fixed income investors, the document from one of the banks showed.

A benchmark issuance comprising tenors of five, 10 and 30 years will follow, subject to market conditions. Tranches of benchmark size are usually at least $500 million.

Cash-strapped Pakistan has been in dire need of funds after its economy was hit hard by the coronavirus pandemic and contracted.

Questions over fiscal and revenue reforms had led to the suspension of a $6-billion bailout package by the International Monetary Fund (IMF) since early last year.

The IMF and Pakistan reached agreement last month to resume the suspended facility, subject to approval by the IMF board.

The IMF approved a $500 million disbursement to Pakistan for budget support after the board completed delayed reviews of the$6-billion loan programme on Wednesday.

The latest payment brought to $2 billion the total disbursements under the Extended Fund Facility since the programme was first approved in July 2019, the IMF said in a statement.

The central bank has revised its GDP growth target to 3 per cent from 2 per cent for fiscal 2020/21, while the IMF projects 1.5 per cent.

Historically remittances and good debt inflows have shored up Pakistan’s foreign reserves to help its currency recover against the dollar.

Published in Dawn, March 26th, 2021

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

1971 in retrospect
Updated 28 Nov, 2022

1971 in retrospect

The point of no return came when the military launched Operation Searchlight in March 1971.
Gender-based violence
28 Nov, 2022

Gender-based violence

IT is a war without boundaries and seemingly without end. A UN report on femicide released on Nov 25, the...
Battle against dacoits
28 Nov, 2022

Battle against dacoits

THE Punjab police is clearly fighting a formidable, and so far losing, battle against the criminal gangs based in ...
Policy rate hike
Updated 27 Nov, 2022

Policy rate hike

The decision to hike the policy rate by 100bps is a step in the right direction, even if intended to appease the IMF.
Vawda’s reprieve
27 Nov, 2022

Vawda’s reprieve

FAISAL Vawda should be relieved. After years of running from a reckoning for submitting a false declaration in his...
Gujarat’s ghosts
27 Nov, 2022

Gujarat’s ghosts

TWO decades have passed since the bloody Gujarat riots, one of the worst spasms of anti-Muslim violence witnessed in...