Pakistan to issue China’s Panda bonds

Category: General

In order to increase the country's financial resources, Pakistan will issue $1 billion worth of panda bonds in the first quarter of 2020.   Habib Bank Limited (HBL) CEO Muhammad Aurangzeb informed that bonds will be issued in the Chinese market for the first time in yuan currency, quoted The News. China is the third largest bond market in the world, where Pakistan will issue bonds.   A Panda bond is a Chinese renminbi-denominated bond from a non-Chinese issuer, to be sold in the People's Republic of China. The move comes as a reflection upon Pakistan's improved economic outlook and growing demand for the country's debt. Reportedly the finance ministry plans to issue bonds as soon as it receives credit rating from Chinese agencies, which process may take a few months, and that Habib Bank Ltd (HBL) is cooperating with the Govt. in the issue of Panda bonds.   It came in the wake of a tweeted message from Prime Minister Imran that country’s economy is finally heading in the right direction, as more of the installed economic reforms bear fruit; for the first time in 4 years Pakistan’s current account deficit turned into surplus last October.


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