KARACHI: Standard Chartered (China) Ltd Co, as the only foreign bank serving as joint lead underwriter and joint book runner, supported the successful issuance of the panda bond, a statement said on Friday.
This week, Pakistan successfully issued a three-year RMB 1.75 billion panda bond in the Chinese interbank market for the first time. This milestone transaction not only broadened Pakistan’s international financing channels but also marked its first entry into the Chinese capital market.
This issuance was partially supported by a guarantee from multilateral development institutions — the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) — with 95 per cent of the principal and interest guaranteed, enabling Chinese investors to participate in the development of sustainable projects in Pakistan. The bond issuance drew exceptionally overwhelming demand from Chinese banks, securities houses, as well as foreign banks, enabling Pakistan to land its inaugural Panda transaction at 2.5 per cent, the tightest level of the pricing range on the back of a 5x oversubscribed orderbook.
Rehan Shaikh, CEO and head of coverage at Standard Chartered Pakistan said: “Today marks a significant milestone as Pakistan makes its debut in the China Debt Capital Market through the successful issuance of its inaugural three-year panda bond.”
“The transaction signals growing investor confidence in Pakistan’s economic direction. We are particularly encouraged that this transaction opens a new and diversified source of funding for Pakistan,” he added.
Global Head of Banks & Broker Dealers and Head of Coverage, Greater China and North Asia, Standard Chartered Jerry Zhang commented: “This transaction fully demonstrates Standard Chartered’s outstanding capability as a ‘super connector’ in linking overseas issuers with China’s capital markets.”
“The successful issuance of this panda bond is also a key reflection of the renminbi’s steady transition from a traditional trade settlement currency to a financing currency,” Zhang said.“With an increasingly diverse range of issuers in the panda bond market and the continuous improvement of cross-border renminbi payment systems, the renminbi is expected to accelerate its strategic shift from a regional to a global currency, playing an even more significant role in the international economic landscape,” he added.
