ISLAMABAD: The government announced on Monday that it had increased its Eurobond size to $750 million by exercising the greenshoe option, up from the $500m it raised last week, as the country sought to bolster its foreign exchange reserves to meet a higher oil import bill following US-Israel attacks on Iran, which pushed up prices due to supply disruptions.

“Following its successful return to international capital markets after four years, Pakistan has upsized its Eurobond issuance to $750m, with an additional $250m placed with global institutional investors through the exercise of the greenshoe option,” the Ministry of Finance said in a statement.

The upsizing reflects stronger-than-expected investor demand, reinforcing confidence in Pakistan’s economic outlook and return to international financial markets, it added. The three-year Eurobond, initially placed at $500m, attracted significant global interest, enabling the government to broaden investor participation, Khurram Schehzad, the adviser to the finance minister, said on the social media platform X.

The ministry said the transaction demonstrated strong investor demand, leading to the successful execution of the greenshoe option, under which a bond issuer can increase the size of a capital market transaction from its original announcement depending on investor response and foreign exchange requirements.

Mr Shehzad said the bond also reflected enhanced depth and liquidity in Pakistan’s sovereign yield curve and reinforced its re-engagement with global capital markets. “Driven by incremental investor demand, the upsizing enhances Pakistan’s presence in global capital markets, reinforces confidence in the country’s economic outlook, and builds momentum for future issuances under the GMTN Programme.”

On April 17, the government announced that it had raised $500m in international capital markets through a Eurobond on attractive terms under its Global Medium-Term Note (GMTN) Programme.

Informed sources said the bond offered a 6.975 per cent interest rate and will mature in April 2029. The announcement came a day after Saudi Arabia said it was extending its support facility for Pakistan to $8bn from $5bn, with an initial additional disbursement of $2bn. A day later, Pakistan returned $2bn out of the remaining $3bn to the UAE, with another $1bn scheduled for repayment later this week.

“Looking ahead, Pakistan will continue to deepen its engagement with global markets. A request for proposals for financial advisers for the GMTN and international sukuk programmes will be launched soon, while the Panda bond is also progressing toward issuance,” the adviser said last week.

“With macroeconomic stability taking hold, structural reforms advancing, and growth momentum gradually strengthening, along with the opening of the Strait of Hormuz and easing energy prices, Pakistan’s timely return to global markets reflects improving fundamentals and renewed investor confidence, with a stable-to-positive economic outlook,” he said.

Finance Minister Muhammad Aurangzeb described the development as the culmination of a four-year journey and signalled that Pakistan’s economy was moving in the right direction. He stressed that it was a “huge vote of confidence” in the country’s leadership and economic direction.

Pakistan has repaid the $1.4 billion Eurobond that matured on April 8 and was required to reduce the financing gap to stay on course with targets set by the IMF, which is expected to approve the disbursement of about $1.3bn by mid-May.

Published in Dawn, April 21st, 2026