ISLAMABAD: Pakistan has won an international award for issuing its first sustainable sovereign Panda bond, Adviser to the Finance Ministry Khurram Shahzad said Wednesday.
In a statement, Shahzad said Pakistan had received the global recognition for issuing its first sustainable sovereign Panda bond, with investor demand for the issue reaching five times the offered amount.
He said the Panda bond had provided Pakistan access to a new and larger pool of institutional investors while further strengthening financial ties between Pakistan and China.
The proceeds from the Panda bond will be used to finance projects in the water, energy and health sectors, Shahzad said, adding that the issuance had also opened new opportunities for green and socially inclusive investment in Pakistan.
Pakistan issued a 1.75 billion Chinese yuan ($244 million) Panda bond in May 2026. The three-year bond carried a coupon rate of 2.5%.
The issuance marked Pakistan’s entry into China’s local capital market and was aimed at diversifying the country’s sources of financing.
Earlier, Pakistan has achieved a significant financial milestone by successfully launching its first-ever Panda bond in China’s domestic capital market marking a major step toward diversifying its international financing sources.
Under the Panda bond programme, which carries an overall size of $1 billion, Pakistan has initially raised an amount equivalent to approximately $250 million, opening a new channel of funding from one of the world’s largest and most liquid financial markets.
The issuance witnessed exceptional investor interest, attracting bids worth 8.8 billion yuan against an offered 1.75 billion yuan, reflecting nearly five times oversubscription and strong global confidence in Pakistan’s economic outlook. The bond was issued at an attractive interest rate of 2.5 percent, further highlighting market optimism.
