KARACHI: The State Bank of Pakistan said on Thursday that it has received the proceeds of the government’s $2.5 billion eurobond issuance in its account.

At the end of last month, the government sold Eurobonds and received higher than expected $5.3bn investment bids. However, the government raised $1bn for five-year at 6pc per annum, $1bn for 10-year at 7.37pc and $500m for 30-year at 8.87pc.

The State Bank said its foreign exchange reserves after arrival of $2.5bn have surged to $16bn, the highest level since July 2017.

MTN programme allows Pakistan to tap bond market on short notice

Earlier, the Finance Ministry in a statement said said the transaction generated great interest as leading global investors from Asia, Middle East, Europe and the US participated in the global investor calls and the order book.

This is for the first time that Pakistan has adopted a programme-based approach with registration of Global Medium-Term Note (MTN) programme.

The programme would allow Pakistan to tap the market at short notice, the statement said, adding the government intends to make full use of this programme and become a regular issuer in the international capital markets.

Published in Dawn, April 9th, 2021