ISLAMABAD: Pakistan has increased the size of its Eurobond issuance to $750 million after exercising a “greenshoe option,” the country’s finance adviser said on Monday, with an additional $250 million placed with global institutional investors.
Pakistan last week raised $500 million through a three-year Eurobond that marked its return to international capital markets after a four-year gap, amid improving investor sentiment toward the country’s economy.
Khurram Schehzad, an adviser to Finance Minister Muhamad Aurangzeb, said Islamabad used the greenshoe option, which allows the issuer, such as a sovereign nation or corporation, to increase the size of a bond issuance beyond the initially planned amount in case of strong investor demand.
“The upsizing reflects stronger-than-expected investor demand, reinforcing confidence in Pakistan’s economic outlook and market re-entry,” Schehzad said on X.
“The 3-year Eurobond, initially placed at $500 million, attracted significant global interest — enabling the Government to broaden investor participation.”
Pakistan last tapped international bond markets in 2022 and has since relied on bilateral and multilateral financing, including support from the International Monetary Fund, to stabilize its economy.
The upsizing signals sustained investor appetite as well as enhanced depth and liquidity in Pakistan’s sovereign yield curve, according to Schehzad.
“The upsizing enhances Pakistan’s presence in global capital markets — reinforcing confidence in the country’s economic outlook and market re-entry, while building momentum for future issuances,” he said.
