Pakistan has raised $750 million through an international bond after exercising a greenshoe option, expanding the deal beyond its original $500 million size.
The original bond offer was set at $500 million, but investor subscriptions exceeded that amount, prompting authorities to activate the greenshoe overallotment mechanism.
A greenshoe option allows an issuer to sell additional securities when demand surpasses the initial offering, raising total capital by a fixed supplementary amount.
The exercise of the greenshoe clause added $250 million to the transaction, lifting the total issuance size from $500 million to $750 million.
Standard Chartered Bank acted as sole bookrunner, arranging the transaction under Pakistan’s existing Global Medium-Term Note programme, known as the GMTN programme.
The bond carries a coupon rate of 6.975 percent per annum and is scheduled to mature in April 2029, giving it a four-year term.
The upsized transaction strengthens Pakistan’s external liquidity position and broadens its access to international financing at a time of ongoing economic reform efforts.
The deal also contributes to the depth and liquidity of Pakistan’s sovereign yield curve, which serves as a benchmark rate for future government borrowings.
A well-established sovereign yield curve allows the government to access future international financing at more competitive interest rates over the coming years.
The bond issuance represents one of Pakistan’s most notable re-entries into global capital markets in recent years, according to financial commentary cited by officials.
