Pakistan Raises Record $3bn in Eurobond Sale as Orders Near $6bn

ISLAMABAD: Pakistan has raised $3 billion from international investors through a two-part Eurobond sale, marking what the Ministry of Finance described as the country’s largest single transaction in global capital markets. The offering attracted orders of nearly $6 billion, indicating demand at roughly twice the amount ultimately issued.

The financing was divided between two maturities. Pakistan raised $1.75 billion through a 5.5-year bond carrying a 7.5% coupon, while another $1.25 billion was secured through a 10-year instrument priced at 7.9%. The longer maturity is particularly significant because it tests international investors’ willingness to hold Pakistani sovereign debt over an extended period after years of constrained access to global markets.

According to the Finance Ministry, demand came from a broad group of institutional investors across several international markets. Officials presented the scale of the order book as evidence that investor appetite for Pakistani sovereign debt has strengthened alongside recent improvements in the country’s macroeconomic indicators and sovereign credit profile.

The transaction also represents the first issuance under Pakistan’s renewed Global Medium-Term Note programme. The government is using that framework to diversify its sources of external financing, extend debt maturities and reduce the risks created when large obligations fall due within short periods. The strategy is intended to give Islamabad greater flexibility in managing future repayments rather than relying excessively on shorter-term borrowing.

Pakistan’s return to the Eurobond market has gathered pace during 2026. In April, the government initially sold $500 million of three-year Eurobonds at a coupon of 6.975%. Stronger demand later allowed the issue to be expanded to $750 million through an additional $250 million placement. That transaction marked Pakistan’s return to international bond markets after a prolonged absence.

The country also repaid a maturing Eurobond worth about $1.4 billion in April, helping establish a fresh benchmark for Pakistan’s borrowing costs and reinforcing the government’s effort to demonstrate its capacity to meet external obligations. The latest five-and-a-half-year and 10-year bonds extend the maturity profile considerably beyond the April issuance.

The Finance Ministry said the broader objective is active management of Pakistan’s sovereign liabilities rather than simply accumulating additional debt. Authorities are seeking to lengthen maturities, diversify creditors and, where financially beneficial, replace shorter and more expensive obligations with funding that provides greater repayment flexibility. Officials have also pointed to recent sovereign credit-rating improvements as part of the background supporting renewed market access.

For Pakistan, the $3 billion transaction provides fresh foreign-currency financing while also serving as an important test of international confidence in the economy. Attention will now turn to how the proceeds are incorporated into the government’s external financing and debt-management plans, whether investor demand remains strong for future bond offerings, and whether improved access to capital markets can be sustained without adding excessive pressure to Pakistan’s long-term debt-servicing burden.