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September 17, 2021

Pakistan to Price Its Next Eurobond on Sept. 24, Dar flies to New York For Roadshow

Pakistan will announce the pricing of its next issue of Eurobond on September 24 after holding a roadshow in New York.

Finance Minister Ishaq Dar flew to New York to attend the last of the series of roadshows for the issue to be held on September 23, according to a government announcement.

After the gap of seven years, Pakistan retuned to the global capital market in April last year with the sale of $2 billion in sovereign bonds against an offer of $7 billion from global investors, several of them based in the U.S.

Since then the government has sold shares in Pakistan Petroleum Limited (PPL), the country’s major natural gas supplier and three banks, including the Habib Bank Limited in April this year which raised $1.02 billion, the biggest so far in the divestment plans.

Pakistan also plan to offer government’s shares in Mari Petroleum and Pak Arab Refinery Limited by end-2015.

For the next launch of Eurobonds, a road show was held in Los Angeles on September 21 while another was due on September 22 in Boston. The series of four roadshows started in London on September 18. Dar will oversee the last one in New York on Sept. 23.

With the help of the IMF, Pakistan has been able to stem the slide and the sale and put the economy on an upward trajectory. Pakistan’s gross domestic product (GDP) grew 4.24 percent in the year that ended on June 30.

Secured in 2013, Pakistan expects the release of $502 tranche of an overall $6.6 billion loan in coming weeks, after the staff-level agreement that was reached in Dubai after meetings held from July 29-August 7. The next tranche will be released after approval of the IMF’s Executive Board.

Pakistan is keeping its option open to go for the next program after the completion of the current program under Extended Fund Facility (EFF) next year.

Speaking to reporters in London, during the road show, Pakistan’s Finance Secretary  Waqar Masood Khan said that terrorism in the South Asia country was costing as much as $5 billion a year in lost investment.  He did not rule the possibility of entering into a new program with the IMF to help boost growth.

“At this stage it is not clear what we will do, we will cross that bridge when we come to it,” Mr Khan was quoted as saying by a report in Daily Dawn, citing Reuters as a source.

 

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