Following the recent successful issuance of a $750 million Eurobond with a three-year maturity at an interest rate of 6.975 percent, the government has initiated efforts to secure international financial partners for its upcoming borrowing activities. It has called for proposals from global consortiums to manage and underwrite future capital market transactions over the next three years.
The selected firms will perform roles as underwriters, lead managers, and bookrunners. Contracts will be awarded based on the most advantageous borrowing conditions, prioritizing factors such as the lowest yield, coupon rate, and overall cost. This approach is designed to provide the government with the flexibility to access international markets aligned with its changing external financing requirements.
Under this strategy, three distinct consortiums will be appointed to oversee different funding streams. These include the renewal of Pakistan’s Global Medium-Term Note (GMTN) Programme and its Sukuk Trust Certificate Issuance (TCI) Programme for another three-year term.
The frameworks will facilitate a broad spectrum of instruments, including Eurobonds—covering ESG, green, gender, and sustainability-linked bonds—as well as international Sukuk and rupee-denominated bonds settled in US dollars.
The recently issued $750 million Eurobond, led by a consortium headed by Standard Chartered Bank, matures in April 2029 and partly aims to refinance obligations to the United Arab Emirates on comparable terms.
Khurram Schehzad, adviser to the finance minister, emphasized that this bond issuance is part of a comprehensive roadmap. The fresh request for proposals reflects a structured approach to managing external financing via capital markets. He noted that the exercise focuses on selecting partners across multiple funding instruments, with market access timing dependent on financing needs and prevailing conditions.
Officials indicated that the timing and scale of future issuances will be driven by market conditions and guidance from appointed transaction advisers. The selected consortiums will be responsible for the complete execution process, including deal structuring, pricing, investor engagement, conducting roadshows, and allocation of bonds.
The first consortium, which may include up to five conventional international financial institutions, will manage Eurobond issuances to ensure broad global investor participation and robust order books.
A second consortium, also comprising up to five institutions but mandatorily including at least one Islamic financial entity, will oversee international Sukuk issuances.
The third consortium, consisting of up to three institutions, will be responsible for issuing rupee-denominated bonds settled in US dollars under the GMTN framework.
Institutions interested in participating have been invited to submit both technical and financial proposals for each category—Eurobonds, Sukuk, and rupee-based dollar-settled bonds. The deadline for bids is May 25, when submissions will be publicly opened.
