Pakistan gets 5 bids from Chinese firms to help with Panda bond issuance
Pakistan has received five bids from Chinese firms to assist in raising funds through Panda bonds, as confirmed by a Bloomberg report on Thursday.
Panda bonds are debt securities issued by foreign entities in the Chinese capital markets, denominated in Chinese yuan (RMB). These bonds enable foreign issuers, including multinational corporations, international financial institutions, and sovereign governments, to access capital from Chinese investors.
'The government received three offers from law firms and two from credit rating agencies before the proposal deadline,' the report mentioned, noting that two local firms also expressed interest in serving as domestic legal counsels for issuing the bonds.
Pakistan aims to attract Chinese investors by issuing up to $300 million in Panda bonds for the first time this year, as stated by Finance Minister Muhammad Aurangzeb in March.
In an interview with Bloomberg, Aurangzeb highlighted that issuing yuan-denominated debt would allow Pakistan to diversify its funding sources and access a new investor market.
This development follows Pakistan's entry into a three-year, 7 billion US dollar aid package with the International Monetary Fund (IMF), which requires validation by the Fund’s Executive Board. This deal is intended to stabilize Pakistan's economy and foster conditions for stronger, more inclusive, and resilient growth.
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