Pakistan Eurobond issuance upsized to $750 million after the government exercised a Green Shoe Option and placed an additional $250 million with global institutional investors, according to Finance Minister adviser Khurram Schehzad.
The increase came only days after Pakistan announced its return to international capital markets following a four-year gap. Officials said the move reflected stronger-than-expected investor demand and reinforced confidence in Pakistan’s economic outlook.
Pakistan originally issued a $500 million three-year Eurobond under the Global Medium-Term Note Programme. It later raised the size to $750 million after investor appetite exceeded initial expectations.
According to Schehzad, the upsizing broadened investor participation and signalled sustained interest in Pakistani sovereign debt. The Green Shoe Option allowed the government to expand the deal without launching a separate issuance.
Officials described the upsized issue as a positive sign for Pakistan’s return to global capital markets. The additional placement is expected to improve the depth and liquidity of Pakistan’s sovereign yield curve.
That matters because a successful market return can help build momentum for future fundraising. It may also strengthen confidence among foreign investors and lenders tracking Pakistan’s external financing position.
The bond sale followed major recent repayments. Pakistan had repaid $1.43 billion in external debt, including a $1.3 billion Eurobond and coupon obligations on other issuances.
The country returned $2 billion in debt to the United Arab Emirates. Officials presented those repayments as signs of stronger discipline and improved debt-servicing capacity, which may have supported investor demand for the new bond.
Pakistan returned to the market amid global volatility, including pressure from higher oil prices driven by Middle East tensions. Even so, investor sentiment appeared to hold up.
The reported coupon rate of about 6.975 per cent suggests officials believe the government secured relatively attractive terms for its first international bond sale in four years. Still, broader external financing pressures have not disappeared.
Pakistan’s decision to increase the bond size from $500 million to $750 million represents more than a technical adjustment. It shows that the country’s market return drew enough demand to exceed the initial target.
That makes the issuance both a financing step and a test of market confidence. Pakistan appears to have passed that test for now, while giving itself a stronger platform for future access to global funding.
