Pakistan Secures $285 Million in Guarantees for Panda Bond Issuance
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
Pakistan has secured $285 million in guarantees from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to raise $250 million in debt through its first-ever Panda bond issuance in China.
The guarantees, aimed at overcoming Pakistan’s poor credit rating, will back 95% of the bond’s principal and interest obligations, according to a report by Express Tribune.
The ADB will provide $160 million in guarantees, while the AIIB will cover $125 million. Both lenders have conditioned their support on the funds being used for green and sustainable projects, including a telemetry system for the Indus Basin, power distribution upgrades, and medical infrastructure.
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The Panda bond, part of a $1 billion programme, will be issued on China’s interbank market with a three-year tenor and a fixed-rate coupon of 3-4%. Backed by AAA-rated guarantees, the bond is expected to attract institutional investors at a lower cost.
Despite the IMF’s $7 billion bailout, Pakistan’s reliance on multilateral guarantees highlights ongoing challenges in accessing international debt markets. The issuance is targeted for completion by December 2025, pending regulatory approvals.
Reference Link:- https://propakistani.pk/2025/09/11/pakistan-secures-285-million-in-guarantees-for-panda-bond-issuance/
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
