Raises 1.83 billion first local currency Karakoram bonds by an MDB.
ISLAMABAD – The Asian Development Bank (ADB) has issued first Pakistan rupee-linked bonds, it said in a statement on Wednesday.
ADB raised 1.83 billion Pakistan rupees ($11.4 million) in a first issue of local Currency karakoram bonds by a multilateral development bank of which Pakistan is a member.
A karakoram bond is an offshore bond denominated in Pakistan rupees and settled in US Dollars, listed on a major stock exchange and settled through an international central securities depositary.
#KarakoramBond ADB's first #Pakistan Rupee-Linked bond will be a boost to private sector development incl small #industries, #trade and #tourism in Pakistan. https://t.co/TrgfI0smY4 @KarandaazPK @StateBank_Pak #SMEs @StateBank_Pak @KamyabJawanPK @IslamabadCCI @pakstockexgltd pic.twitter.com/nDWvBCWE87
— ADBPakistan (@PakistanADB) November 18, 2020
The international bond issue pays a 7.50% semi-annual coupon and matures in August 2023. The bonds were arranged by Citigroup Global Markets and sold to European asset managers.
The net proceeds from the sale of the bond issue will be included in ADB’s ordinary capital resources. Previously, ADB had no local currency loans in Pakistan, but this option will be offered in future projects as an alternative to Dollar borrowing. It is anticipated that ADB’s local currency loans will be a boost to private sector development in Pakistan.
“Engineering local currency solutions is both an art and a science,” said ADB Treasurer Pierre Van Peteghem. “Not only must we marry investor demand with market conditions to achieve optimal currency and interest rates, but we must also dedicate time and resources to a close dialogue with the government to achieve the best possible outcome.”
“The Pakistan rupee-linked karakoram bond floated by ADB is an excellent initiative. I am confident it will have significant mutually beneficial outcomes for Pakistan and ADB,” said Adviser to Pakistan’s Prime Minister on Finance and Revenue Abdul Hafeez Shaikh.
State Bank of Pakistan Governor Reza Baqir congratulated the ADB team and affirmed his appreciation of ADB’s support for Pakistan’s financial and economic development. “ADB’s inaugural issue of Pakistan rupee-linked karakoram bonds will help deepen the capital markets of Pakistan while channeling funding to vital economic sectors,” he said.
ADB appreciates the support provided by the State Bank of Pakistan to facilitate coordination with the government to successfully start this program. ADB is a regular borrower in the mainstream international bond markets. It has also led issuances in developing Asian countries as part of its efforts to promote local currency bond markets as an alternative to bank lending. ADB has already issued local currency bonds in Indian rupees, Kazakhstan tenge, and Mongolian togrog in 2020.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Pakistani currency continues to gain against US Dollar and other currencies on April 18, 2024. US dollar was being quoted at 277.2 for buying and 280.3 for selling.
Euro comes down to 293 for buying and 296 for selling while British Pound stands at 342.25 for buying, and 345.65 for selling.
UAE Dirham AED was at 75.25 and Saudi Riyal's new rates was at 73.30.
Currency | Symbol | Buying | Selling |
---|---|---|---|
US Dollar | USD | 277.2 | 280.3 |
Euro | EUR | 293 | 296 |
UK Pound Sterling | GBP | 342.25 | 345.65 |
U.A.E Dirham | AED | 75.25 | 75.95 |
Saudi Riyal | SAR | 73.3 | 74.05 |
Australian Dollar | AUD | 181 | 182.8 |
Bahrain Dinar | BHD | 739.63 | 747.63 |
Canadian Dollar | CAD | 201 | 203 |
China Yuan | CNY | 38.45 | 38.85 |
Danish Krone | DKK | 40.45 | 40.85 |
Hong Kong Dollar | HKD | 35.57 | 35.92 |
Indian Rupee | INR | 3.32 | 3.43 |
Japanese Yen | JPY | 1.86 | 1.94 |
Kuwaiti Dinar | KWD | 902.26 | 912.91 |
Malaysian Ringgit | MYR | 58.24 | 59.52 |
New Zealand Dollar | NZD | 164.75 | 169.63 |
Norwegians Krone | NOK | 25.42 | 25.68 |
Omani Riyal | OMR | 722.1 | 730.1 |
Qatari Riyal | QAR | 76.37 | 77.05 |
Singapore Dollar | SGD | 206 | 208 |
Swedish Korona | SEK | 25.72 | 26.02 |
Swiss Franc | CHF | 307.11 | 309.61 |
Thai Bhat | THB | 7.56 | 7.76 |
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