By Staff Reporter
ISLAMABAD: Pakistan appointed international bank consortiums to arrange a fresh round of Eurobond, Sukuk and rupee-denominated dollar bond sales, building on the South Asian nation’s return to global capital markets earlier this year.
The Finance Division named three separate banking groups on Tuesday to manage issuance under Pakistan’s Global Medium-Term Note and international Sukuk programs, according to a statement. The mandates, awarded through competitive tender, run for three years and cover conventional Eurobonds, Islamic Sukuk and a new instrument: bonds denominated in rupees but settled in US dollars.
Standard Chartered Bank, Citibank NA, Deutsche Bank AG, Emirates NBD Capital and MUFG Securities Asia Ltd. will arrange Eurobond sales. A separate consortium of Standard Chartered, Dubai Islamic Bank PJSC, Citibank, Emirates NBD Capital and Mashreq Bank PSC will handle Sukuk issuance. For the rupee-linked dollar-settled bonds, Pakistan tapped Standard Chartered, Citibank and Deutsche Bank.
Finance Minister Muhammad Aurangzeb, in Washington for meetings this week, held a virtual session with senior executives from the selected banks to launch the partnerships, the ministry said in a post on X. The appointment of MUFG and Mashreq marks their first inclusion in Pakistan’s sovereign advisory roster, a move the government said broadens its access to global financial institutions beyond its traditional relationships.
The mandates set the stage for Pakistan’s continued activity in international debt markets following its return in 2026 through a $750 million Eurobond and its inaugural $250 million Panda bond — yuan-denominated debt sold in China’s onshore market. Both issues drew demand that exceeded the amount on offer.
The Finance Division said the bank appointments aren’t a one-time exercise but part of a structured effort to build a durable external financing framework. The government cited fiscal consolidation, the rebuilding of external buffers, improving debt-sustainability indicators and continued implementation of structural reforms as factors that have narrowed Pakistan’s sovereign credit spreads and reinforced investor confidence.
Once documentation and regulatory requirements are finalized, the government intends to draw on the consortiums for issuances as financing needs arise, rather than launching a single bond sale. The stated goals: diversify Pakistan’s investor base, lower borrowing costs and establish a longer-term presence in global debt markets.
“The Government of Pakistan welcomes the selected consortium banks and looks forward to working closely with them in supporting the successful execution of Pakistan’s sovereign capital market transactions,” the Finance Division said.
The rupee-denominated, dollar-settled bond represents a new financing avenue for Pakistan, which has traditionally issued conventional Eurobonds and Sukuk in its market appearances. Such instruments allow international investors to gain exposure to local-currency yields while avoiding direct currency-conversion risk — a structure that has gained traction among frontier-market sovereigns seeking to widen their investor base without adding foreign-currency debt.
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