Pakistan launched a US dollar-denominated benchmark dual-tranche Eurobond offering on Tuesday, seeking buyers for five-year and 10-year notes under its Global Medium-Term Note Programme.
The debt sale extends the government’s borrowing timeline following an upsized $750 million three-year bond issued in April.
Final issue size, pricing spreads and yields remain unannounced and depend on market conditions. Khurram Schehzad, adviser to the finance minister, stated on X that the proposed transaction reflects recent sovereign rating upgrades and improving macroeconomic data.
Ratings and Tenors
S&P assigned a ‘B’ rating to the proposed benchmark notes and the underlying medium-term note programme, in line with its sovereign rating. Fitch Ratings assigned the programme a ‘B-‘ rating alongside a recovery rating of ‘RR4’.
The new five-year and 10-year tranches stretch maturities well past the three-year tenor used five months ago. In April, Pakistan ended a four-year absence from offshore bond markets by raising an initial $500 million at a 6.975 per cent coupon. Stronger bids pushed the government to exercise a $250 million green-shoe option, taking the total to $750 million due in April 2029. The finance ministry also cleared a maturing $1.4 billion Eurobond that same month to rebuild market standing.
Market Access and Fiscal Pressures
For frontier borrowers across South Asia, placing debt past five years marks a shift away from short-term bilateral rollovers back toward commercial pricing discipline. The transaction tests whether international funds view Pakistan’s recent fiscal adjustments as durable enough to lock in capital for a full decade.
Bookrunners will fix pricing guidance and tranche sizes as investor orders come in over the coming days.