Pakistan's record $3bn Eurobond sale signals investor confidence

Pakistan raised a record $3 billion through a dual-tranche Eurobond sale, its largest international capital market transaction, attracting nearly $6 billion in total orders from investors. The sale boosts reserves, sets a new pricing benchmark, and reduces reliance on short-term bilateral rollovers by locking in financing for 5.5 and 10 years. However, coupon rates are higher than Pakistan's 2021 dollar bond issuance, reflecting both elevated global dollar rates and a Pakistan-specific risk premium. Pricing aligns with peers of similar credit standing, placing Pakistan above junk status but below investment grade. The deal's true success will be measured by whether Pakistan can return to markets within two years at lower borrowing costs.