Proceeds of first sustainable Panda Bond earmarked for water, energy, health sectors
Federal Minister for Finance Muhammad Aurangzeb on Friday addressed the inaugural Panda Bond issuance ceremony at the Embassy of Pakistan in Beijing, describing the issuance of Pakistan's first-ever Panda Bond as a historic milestone in the country's economic. financial engagement with China and the international capital markets.
Addressing representatives of the government of China, multilateral development banks, rating agencies, financial institutions. investors, the finance minister said the successful issuance reflected trust, partnership, innovation, financial collaboration and a shared commitment to sustainable development and regional connectivity.
He stated that the occasion carried special significance as Pakistan. China were celebrating 75 years of diplomatic relations founded on mutual respect and strategic trust.
He noted that the Panda Bond demonstrated the growing maturity of bilateral economic cooperation. the confidence of Chinese institutions and investors in Pakistan's economic direction. Pakistan, he added, became the first Panda Bond issuer from South Asia.
Aurangzeb told participants that Pakistan had established a 7.2 billion Chinese yuan Panda Bond programme after two years of extensive preparation. coordination with Chinese regulators, development partners, advisers and market participants. He noted that the debut issuance of CNY 1.75 billion received an overwhelmingly positive response. was oversubscribed, reflecting strong investor confidence in Pakistan's economic outlook and reform agenda.
The minister appreciated the support provided by China International Capital Corporation as lead underwriter, alongside Bank of China, Standard Chartered Bank. Hongta Securities as joint lead underwriters as well as HBL as financial adviser. He also expressed gratitude to the Asian Infrastructure Investment Bank (AIIB). the Asian Development Bank (ADB) for their credit-enhancement guarantees, which helped facilitate Pakistan's entry into the Chinese onshore bond market.
He stated that it was Pakistan's first sustainable Panda Bond, with proceeds earmarked for projects in water, energy. health sectors underscoring the government's commitment to inclusive and sustainable growth.
Speaking on Pakistan's economic progress, Aurangzeb said the country's economy was experiencing renewed stability, disciplined reforms and forward-looking transformation. He highlighted improvements in macroeconomic indicators, including stronger GDP growth, sharply reduced inflation, improved foreign exchange reserves, fiscal consolidation. a stabilised external sector supported by resilient exports and robust remittance inflows.
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