Govt floats $1b Eurobonds at 8.5% interest rate
Moves aims at building foreign exchange reserves
ISLAMABAD:
Pakistan on Tuesday floated different tenors Eurobonds worth $1 billion at up to 8.5% interest rates.
The bonds the first major transaction in FY 2021-22 have been arranged to build the country’s foreign exchange reserves.
“The government floats five-, 10- and 30-year bonds at an interest rate that range between 5.875% to 8.45%,” a senior government functionary confirmed to The Express Tribune.
Pakistan borrowed $300 million for five years at 5.875% interest rate which was 5.01% higher than the benchmark five-year US paper. The government also borrowed another $400 million for 10 years at an interest rate of 7.125% up 5.7% over the comparative US treasury rate.