A document released on Thursday showed that Pakistan has hired a group of banks to arrange meetings with investors ahead of the sale of the Third tranched of Eurodollar bonds.
The bank document revealed that Credit Suisse, Deutsche Bank, Emirates NBD Capital, JP Morgan, Standard Chartered, and Bank International will maintain contacts with fixed income investors.
This will be followed by a 5, 10 and 30 year Bonds issuance, depending on market conditions. The standard-issue size for each tenor of the bond is at least $ 500 million.
Cash-strapped Pakistan was in desperate need of money after its economy was hit hard by the coronavirus pandemic and contracted.
Questions about tax reforms and revenues have led the International Monetary Fund to suspend a $ 6 billion bailout package since the beginning of last year.
Last month, the International Monetary Fund and Pakistan reached an agreement to resume the suspended mechanisms, subject to approval by the IMF’s board of directors.
The International Monetary Fund agreed to provide Pakistan with $ 500 million in budget support after the board closed late reviews of the $ 6 billion loan program on Wednesday.
The International Monetary Fund said in a statement that the latest payment resulted in a total payout under the EFF of $ 2 billion since the program was first approved in July 2019.
A local media outlet quoted the Director of debt at the Ministry of Finance, as saying in a webinar last month that Pakistan expects to raise more than $ 1.5 billion in global bonds if market conditions are favorable.
Record remittances and healthy debt flows have boosted Pakistan’s foreign exchange reserves to help its currency recover against the dollar.
The central bank revised its GDP growth target to 3% from 2% for the 2020/21 fiscal year, while the International Monetary Fund expects 1.5% growth for FY2021.
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