Pakistan launches dual-tranche Eurobond offering

Pakistan launches dual-tranche Eurobond offering.

Key points

• Dawn Report Published September 2, 2026 Updated September 2, 2026 07: 18am.
• In April, the administration initially raised $500 million through a three-year Eurobond under its Global Medium-Term Note (GMTN) Programme at a coupon of 6.975pc.
• Fitch Ratings additionally assigned the GMTN programme a 'B-' rating with a Recovery Rating of 'RR4', in line with the country's long-term sovereign rating.
• The latest move comes less than five months after Pakistan returned to the international bond market after a four-year absence.
• On Tuesday, S&P additionally assigned a 'B' rating to Pakistan's GMTN programme and the proposed benchmark US dollar notes, in line with the sovereign rating.

Dawn Report Published September 2, 2026 Updated September 2, 2026 07: 18am. Join our Whatsapp Channel. Add Dawn as a trusted source.

As the administration seeks to deepen its return to international capital markets after recent sovereign rating upgrades, ISLAMABAD: Pakistan on Tuesday introduced the process for a US dollar-denominated benchmark dual-tranche Eurobond offering with five-year and 10-year tenors.

Adviser to the Finance Minister Khurram Schehzad remarked in a post on X that the proposed transaction was subject to market conditions and represented another step in Pakistan's renewed access to international capital markets.

Notably, the size of the proposed issuance, pricing and final yields are yet to be confirmed and will depend on investor demand and prevailing market conditions. Mr Schehzad remarked the transaction followed improvements in Pakistan's sovereign credit ratings and macroeconomic indicators and reflected the country's growing engagement with international investors.

Meanwhile, the latest move comes less than five months after Pakistan returned to the international bond market after a four-year absence.

Minister's aide calls it another step in country's renewed access to global capital markets.

In April, the administration initially raised $500 million through a three-year Eurobond under its Global Medium-Term Note (GMTN) Programme at a coupon of 6.975pc. The matter was subsequently climbed to $750m through a $250m green-shoe option after stronger-than-expected investor demand. The bond matures in April 2029.

Pakistan has additionally repaid a $1.4 billion Eurobond that matured in April, allowing the administration to re-establish a pricing benchmark in international debt markets after a number of years of relying heavily on multilateral, bilateral and commercial financing.

Meanwhile, the latest offering extends the maturity profile beyond the three-year tenor applied in April, with the proposed five- and 10-year tranches providing a test of investors' willingness to hold Pakistani sovereign debt for longer periods. Published in Dawn, September 2nd, 2026.

Taken together, the developments around pakistan launches dual point to a situation that is still moving, and the coming days should bring more clarity.