Pakistan hires banks for a possible foreign currency bond offering: Report

The nation is looking to raise funds after reaching an agreement with the IMF on resumption of a $6-bn bailout program that was secured in 2019 to avoid bankruptcy

Pakistan has hired banks for a possible foreign currency bond offering, according to people familiar with the matter.

 

The government has mandated Deutsche Bank, JPMorgan Chase, Credit Suisse Group, Standard Chartered and Emirates NBD Bank PJSC, the people said, asking not to be identified because the details are private.

 

The South Asian nation is looking to raise funds after reaching an agreement with the IMF on resumption of a $6-billion bailout program that was secured in 2019 to avoid bankruptcy. Pakistan is also separately planning to issue a $500-million green note in the next few months to help boost its development of hydroelectric power.

 

There were no replies to requests for comment from the finance ministry and media team. Muhammad Umar Zahid, director debt at the Ministry of Finance, said in a webinar last month that the country expected to raise more than $1.5 billion in global bonds if market conditions were conducive. It was setting up a medium-term note program that would keep it registered for 12 months instead of a single transaction, he said.

 

Borrowing costs in debt markets globally have jumped in recent weeks after a spike in rates fueled by rebounding economic activity around the world. Pakistan is also currently contending with an increase in coronavirus cases that has seen new restrictions imposed in most major cities.