This milestone transaction has broadened Pakistan’s international financing channels
Pakistan has successfully issued a 3-year RMB 1.75bn panda bond in the Chinese interbank market for the first time.
This milestone transaction not only broadened Pakistan’s international financing channels but also marked its first entry into the Chinese capital market. Standard Chartered (China), as the only foreign bank serving as joint lead underwriter and joint book runner, supported the successful issuance of the bond.
This issuance was partially supported by guarantee from multilateral development institutions—the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB)—with 95% of the principal and interest guaranteed, enabling Chinese investors to participate in the development of sustainable projects in Pakistan.
Interconnected capital markets
“At Standard Chartered, we remain focused on helping sovereign and institutional clients navigate increasingly interconnected capital markets and unlock diversified sources of funding across geographies,” remarked Salman Ansari, Global Head, Capital Markets, Standard Chartered.
“With an increasingly diverse range of issuers in the Panda bond market and the continuous improvement of cross-border Renminbi payment systems, the Renminbi is expected to accelerate its strategic shift from a regional to a global currency, playing an even more significant role in the international economic landscape,” commented Jerry Zhang, Global Head of Banks & Broker Dealers and Head of Coverage, Greater China and North Asia, Standard Chartered.
