HONG KONG, Feb 21: Pakistan has mandated three investment banks to handle an offshore bond issue, its third foray into the international market since February 2004, market sources said on Tuesday.

The three are Citigroup, Deutsche Bank and JP Morgan.

The sources gave no further details on the size and maturity of the bonds, but one said the deal may not be launched in the first quarter.

Adnan Gilani, director at Pakistan’s ministry of finance, told Reuters in January that his country planned to issue a eurobond of over $500 million by the end of March.

Mr Gilani said at the time that the issue size would probably be towards the upper range of previous issues and the tenor would range between five and 10 years, with a high probability of it being towards the higher end.

Pakistan, which had been under economic sanctions after conducting nuclear tests in mid-1998, returned to the international debt market in February 2004 with a $500 million, five-year eurobond issue.

In January 2005, the country sold a $600 million Islamic bond.

Pakistani officials have said the country does not need the cash but wants to develop a benchmark for international markets.

Pakistan is rated B-plus by Standard & Poor’s, four notches below investment grade.—Reuters