ISLAMABAD – Pakistan pulled off its biggest-ever international bond transaction, raising staggering $3 billion through dual-tranche Eurobond sale as global investors placed nearly $6 billion in orders, signaling a sharp revival in appetite for the country’s debt.
The landmark transaction saw South Asian nation raise $1.75 billion through a 5.5-year bond at a 7.5% coupon and another $1.25 billion through a 10-year bond carrying a 7.9% coupon, according to the Ministry of Finance.
The massive response meant investor demand was almost double the amount Pakistan offered, with orders pouring in from a broad and geographically diversified base of institutional investors across global markets.
The deal comes at critical point for Pakistan, which has seen its sovereign credit profile improve through a series of rating upgrades in recent months. The stronger ratings have helped revive investor confidence and reopen access to international capital markets on a larger scale.
The size of order book emerged as biggest headline from the transaction. Investors sought almost $6 billion worth of Pakistani bonds, despite the government targeting $3 billion.
The transaction marks first issuance under Pakistan’s renewed Global Medium-Term Note (GMTN) Programme, giving Islamabad a broader platform for accessing international capital markets. The development follows Pakistan’s inaugural Panda Bond and comes as the country seeks to diversify its external financing options and establish more sustainable access to global investors.
Finance Ministry said the government’s strategy is not simply about taking on fresh debt. Instead, the latest transaction forms part of a broader sovereign liability-management strategy aimed at diversifying financing sources, extending debt maturities and reducing refinancing and rollover risks.
Officials said longer-duration financing could also provide an opportunity to replace shorter-term and more expensive obligations whenever market conditions make such a move financially beneficial.
Part of the $3 billion raised will be used to meet Pakistan’s external financing requirements, including the repayment of existing loans and other debt obligations.
The latest transaction builds on Pakistan’s return to international bond markets earlier this year. In April 2026, Islamabad initially raised $500 million through a three-year Eurobond, with the amount later increased through the exercise of a green-shoe option.
The record issuance is being viewed as another major development in Pakistan’s efforts to rebuild its position in international financial markets after the country came dangerously close to default during the 2022–23 economic crisis. The country’s economic progress over the past three years, pointing to successive sovereign credit-rating upgrades and renewed access to international financing.
Now, the government says, international investors have reinforced that improving assessment with billions of dollars in actual demand.
Ministry of Finance praised Debt Management Office for executing the transaction and acknowledged the role of the five joint bookrunners, Citi, Deutsche Bank, Emirates NBD, MUFG and Standard Chartered.
Pakistan to issue $2.75b in international bonds over next 3 years
