ISLAMABAD: Pakistan has increased its Eurobond issuance to $750 million after exercising a “greenshoe option,” the finance adviser said on Monday, with an additional $250 million raised from global institutional investors.
Last week, Pakistan raised $500 million through a three-year Eurobond, marking its return to international capital markets after a four-year gap amid improving investor sentiment toward the country’s economy.
Khurram Schehzad, adviser to Finance Minister Muhammad Aurangzeb, said the government activated the greenshoe option, which allows issuers such as sovereign states or corporations to expand the size of a bond offering beyond the initial amount in response to strong investor demand.
“The upsizing reflects stronger-than-expected investor demand, reinforcing confidence in Pakistan’s economic outlook and market re-entry,” Schehzad said on X.
He added that the three-year Eurobond initially set at $500 million attracted significant global interest, enabling the government to broaden investor participation.
Pakistan last accessed international bond markets in 2022 and has since relied on bilateral and multilateral financing, including support from the International Monetary Fund, to stabilize its economy.
According to Schehzad, the upsizing indicates sustained investor appetite as well as improved depth and liquidity in Pakistan’s sovereign yield curve.
“The upsizing enhances Pakistan’s presence in global capital markets, reinforcing confidence in the country’s economic outlook and market re-entry while building momentum for future issuances,” he said.
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