Latest news with #PandaBond
Business Recorder
10-07-2025
- Business
- Business Recorder
Panda Bond: MoF makes pre-marketing initiatives
ISLAMABAD: Representatives of the Ministry of Finance, government of Pakistan, have initiated a series of pre-marketing investor meetings in Beijing, China, from July 7 till 11, 2025, as part of a non-deal investor road-show (NDR) in preparation for Pakistan's debut Panda Bond issuance, said Adviser to Finance Minister Khurram Shahzad. The adviser posted on X that the Ministry of Finance delegation has held technical discussions with potential investors, underwriters, prospective guarantors, Chinese Rating Agency, and Chinese legal counsel. Meetings are focused on Pakistan's macroeconomic review and outlook, ongoing debt management reforms, and the structure and progress of the proposed Panda Bond transaction. Discussions also covered regulatory processes, credit enhancement arrangements, and investor interest in the forthcoming issuance. The NDR drew strong initial interest, signalling investor confidence in Pakistan's reform trajectory and its growing credibility in international capital markets. Copyright Business Recorder, 2025
Business Recorder
09-07-2025
- Business
- Business Recorder
Pakistan kick-starts preparation for issuance of debut Panda bond
KARACHI: Representatives of the Ministry of Finance, Government of Pakistan, have initiated a series of pre-marketing investor meetings in Beijing, China, from July 7 till 11, 2025, as part of a non-deal investor roadshow (NDR) in preparation for Pakistan's debut Panda Bond issuance. The MoF delegation has held technical discussions with potential investors, underwriters, prospective guarantors, Chinese Rating Agency, and Chinese legal counsel. Khurram Schehzad, advisor to the finance minister, reported in a post on X post on Wednesday that meetings were focused on Pakistan's macroeconomic review and outlook, ongoing debt management reforms, and the structure and progress of the proposed Panda Bond transaction. The discussions also covered regulatory processes, credit enhancement arrangements, and investor interest in the forthcoming issuance. The NDR drew strong initial interest, signaling investor confidence in Pakistan's reform trajectory and its growing credibility in international capital markets, according to the X post. 'The visit reflects the government's commitment to proactive investor engagement and diversification of funding sources through access to China's onshore capital market.' The inaugural Panda Bond is expected to be launched this year, following the completion of documentation and required approvals, including credit guarantees from multilateral development partners. Panda Bond: govt to raise $200m from Chinese investors: Aurangzeb 'This milestone marks Pakistan's strategic move to tap China's deep and diversified onshore bond market, expand its investor base, and diversify funding sources through local currency instruments backed by multilateral partners. 'The successful NDR so far reflects the government's commitment to innovative and forward-looking financial diplomacy - and sends a clear message: Pakistan is ready to enter new capital frontiers with confidence and credibility.' Earlier, Finance Minister Muhammad Aurangzeb has said that the size of the Panda Bond issuance would be around $300 million.
Zawya
17-06-2025
- Business
- Zawya
Kenya banks on Panda bond to fund SGR to Malaba
Kenya has kicked off the process of issuing its first Panda bond as it seeks to plug financing gaps ahead of extending its standard gauge railway (SGR) from Naivasha to Malaba at the border with Uganda – a project heavily reliant on Chinese support. A Panda bond is a sovereign facility issued in the Chinese domestic market and denominated in Yuan Renminbi (RMB), targeting Chinese investors and institutions. Kenya mulls issuing it on the Shanghai Stock Exchange, seeing it as a useful path to fetch new monies for big-ticket projects. National Treasury and Economic Planning Cabinet Secretary John Mbadi says the plan is to diversify Kenya's external financing sources.'We are in the process of actualising, raising more funds through Sukuk and even the Panda bond,' Mr Mbadi told journalists after presenting the 2025/26 budget statement to Parliament on Thursday, referring to sovereign bonds issued in Arab and Chinese markets respectively.'We're diversifying. We're even going to the UAE for other bonds. We don't want to confine ourselves to specific bonds like it has been previously, because there would be serious risk in the event of certain turbulence in those particular markets.'While Mr Mbadi did not disclose the exact purpose of the Panda bond proceeds, sources familiar with the matter say the Yuan-denominated facility is specifically aimed at bridging the funding shortfall for the SGR extension project, seeking to raise at least $1.5 billion. This week, Musalia Mudavadi, Prime Cabinet Secretary and Foreign and Diaspora Affairs Cabinet Secretary, said Kenya was banking on Chinese support to ensure the bond is floated at the start of the next fiscal year.'Panda bond discussions have started and Kenya looks forward to the support of China,' he said after meeting with Chinese counterpart Wang Yi in Changsha, the capital of Hunan province in southern china. China has long stopped issuing concessional loans to African countries but hasbeen gradually opening up to public-private partnerships, grants and permitting foreign governments to fetch funds via sovereign bonds. Kenya had initially agreed with China to co-finance the project, each contributing 30 percent of the required funds, with a consortium of private investors expected to cover the rest. But Nairobi has since expressed difficulty in raising its share and requested additional Chinese support. During President William Ruto's state visit to Beijing in April, the two countries signed a deal to jointly finance the 475-kilometre rail from Naivasha to Malaba, where it is expected to link with Uganda's own SGR extending to Kampala. I also underscored the importance of concluding discussions on financial cooperation before the end of June 2025 as a critical step forward,' Mr Mudavadi said in a dispatch after a meeting with Wang Yi on Tuesday. Lack of a rail link between Kenya and Uganda has meant that most cargo from the Mombasa port is transported by road to Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo. This overreliance on road transport increases both time and cost. But financing constraints in both Kenya and Uganda have long delayed efforts to complete the Naivasha–Kampala railway connection, pushing both governments to court new financiers for their respective sections. China was the key financier of the first two SGR phases—from Mombasa to Nairobi, and then from Nairobi to the Naivasha dry port—through loans from the China Export-Import (Exim) Bank. The 729-kilometre stretch was built by the China Road and Bridge Corporation, a state-owned firm, at a total cost of about $5 billion. China pulled out of the Malaba extension after Naivasha, citing concerns over its commercial viability and Kenya's rising debt, which raised the risk of loan default — including on Chinese credit. After years of seeking alternative financing, Kenya returned to Beijing, leading to the April agreement in which China will finance only up to 30 percent of the costs, a sharp drop from the 90 percent it had provided for the earlier phases. The Panda bond is expected to cover part of Kenya's reduced contribution. The Treasury has also increased the railway transport budget by Ksh12.8 billion ($99 million) to Ksh38 billion ($293 million) in the 2025/26 fiscal year, up from Ksh25.2 billion ($195 million) in the current year, signalling renewed investment in the sector. If successful, Kenya would become only the second African country after Egypt to access the Chinese capital market through a Panda bond. Cairo raised $480 million via such a bond in October 2023. With concessional funding drying up — following the expiry of an International Monetary Fund (IMF) programme in March — bonds issued in China, Japan, or the UAE appear more attractive, especially as Eurobond yields remain high. As of March, Kenya's total public debt stood at $87.8 billion about 71 percent of GDP, placing the country at high risk of debt distress. International lenders have urged Nairobi to slow down on borrowing, especially for large infrastructure projects. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Express Tribune
27-04-2025
- Business
- Express Tribune
FinMin for boosting regional trade
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS Listen to article Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a series of meetings and participated in discussions on the sidelines of World Bank and International Monetary Fund (IMF) Spring Meetings in Washington. According to press statements released on Saturday, the finance minister discussed trade diversification and highlighted the improvement in Pakistan's macroeconomic indicators and its endeavours to stimulate investment in high-yielding projects. In a panel discussion at the IMF on the theme of "Navigating an Uncertain World," Aurangzeb emphasised the importance of promoting regional trade in the wake of global uncertainty and elevated risks, which have affected different countries. He called for diversification of sectors and markets and the need to shift the economic model from import substitution to export-led growth. Terming the IT sector a real game changer, he recommended the integration of IT systems across government and private sector entities. The federal finance minister held a meeting with the senior management of JP Morgan Chase, where he briefed them that Pakistan's economic indicators were moving in the right direction. He underlined the necessity of pursuing a more sustained growth trajectory to avoid the recurrence of boom-and-bust cycles. He shared progress on the Reko Diq copper and gold mining project and said that there was a need to diversify Pakistan's markets and sectors. He expressed the desire to return to international capital markets through the launch of inaugural Panda Bond. While holding talks with senior representatives of the United States Export-Import (Exim) Bank, led by Acting First Vice President Jim Barrows, Aurangzeb briefed the bank's delegation on Pakistan's improving macroeconomic fundamentals and the fiscal consolidation measures undertaken by the government. He pointed out that Pakistan had successfully reached a staff-level agreement with the IMF on the first review of the Extended Fund Facility and on a new arrangement under the Resilience and Sustainability Facility. He provided an update on the progress on the Reko Diq project and outlined its significance in attracting foreign investment. He sought the Exim Bank support to facilitate greater US investment in Pakistan. The minister also expressed Pakistan's desire to engage constructively with the US to address tariff-related issues and strengthen bilateral ties. Separately, in a meeting with UK Minister of State for International Development Baroness Chapman, the finance minister praised Chapman for the UK's longstanding partnership with Pakistan and its continued support for socio-economic development. He briefed her on the World Bank's 10-year Country Partnership Framework for Pakistan, which has placed a strong emphasis on tackling population challenges and enhancing climate resilience. Highlighting Pakistan's commitment to digital reforms, the federal minister underscored the importance of reducing the human interface between tax collectors and taxpayers through the use of technology. He appreciated the role of ReMIT platform in mapping development assistance over the past two years and in formulating an effective communication strategy. In a separate huddle, Muhammad Aurangzeb briefed US International Development Finance Corporation Acting CEO Dev Jagadesan on Pakistan's macroeconomic outlook and the potential investment projects, including the Reko Diq mining project in Balochistan. He appreciated the participation of senior US officials in the recent Pakistan Minerals Investment Forum and saw immense potential for deepening mutually beneficial cooperation between Pakistan and the US. Aurangzeb also met International Finance Corporation Managing Director Makhtar Diop and his team on the sidelines of the IMF-World Bank Spring Meetings. While lauding Diop for his visit to Pakistan in March, he briefed the IFC delegation on the strong macroeconomic indicators of the country and the recent sovereign credit rating upgrade by Fitch, terming it external validation of the government's successful reform initiatives. The minister appreciated the IFC's support for the Reko Diq project and urged the corporation to expedite its advisory work on the Karachi airport. He agreed with the IFC MD on the need to focus more on subnational governments and build their capacities for enhanced development impact.
Express Tribune
26-04-2025
- Business
- Express Tribune
Aurangzeb presses for climate action
Finance Minister Muhammad Aurangzeb has stressed the importance of climate resilience, attracting foreign investment and promoting economic diversification. He highlighted this during a series of high-level engagements on the sidelines of the World Bank and International Monetary Fund's Spring Meetings in Washington. According to a press release issued by the finance ministry here Saturday, at the high-level dialogue of the Fund for Responding to Loss and Damage (FRLD), he highlighted climate change as an existential threat to Pakistan, recalling the devastating 2022 floods. He stressed the urgent need to operationalise the Loss & Damage Fund with simplicity, agility and robust accountability mechanisms, urging faster disbursements to vulnerable nations. In a meeting with Hiroshi Matano, Executive Vice President of the Multilateral Investment Guarantee Agency (MIGA), Aurangzeb appreciated MIGA's efforts in resolving the Star Hydro power dispute and pledged full support for a potential trade finance facility. He welcomed MIGA's upcoming mission to Pakistan and expressed hope for finalising the deal this year. The finance minister also held a productive meeting with Thomas Lersten, a senior official from the US State Department, thanking the US for its strong participation in the minerals conference in Pakistan. He reiterated Pakistan's desire for constructive engagement to address tariff issues, for which a high-level trade and investment delegation was expected to visit the US. During discussions with Makhtar Diop, managing director of the International Finance Corporation (IFC), the minister highlighted Pakistan's strong macroeconomic indicators, including Fitch's recent credit rating upgrade. He urged expedited advisory work on Karachi Airport and stressed subnational governance capacity-building. The finance minister also met with senior representatives of the United States Export-Import Bank, led by Jim Barrows and briefed them on Pakistan's improving macroeconomic fundamentals and fiscal consolidation measures, highlighting the staff-level agreement with the IMF under the EFF and RSF. Providing them with an update on the Reko Diq project, the finance minister called for enhanced EXIM Bank support for US investment in Pakistan, expressing a desire to resolve tariff issues. In talks with JP Morgan Chase, the finance minister underscored Pakistan's stable economic trajectory and plans to diversify markets. He reiterated Pakistan's intent to return to international capital markets through an inaugural Panda Bond issuance. While speaking at an IMF panel discussion on "Navigating an Uncertain World," Minister Aurangzeb emphasised the importance of promoting regional trade amidst global uncertainty. He advocated for sector and market diversification and a shift from import substitution to export-led growth, identifying the IT sector as a key driver. Later, the finance minister met with Dev Jagadesan, acting CEO of the US International Development Finance Corporation (DFC), to discuss project pipelines, including Reko Diq, and potential US-Pakistan cooperation. The minister also met with Baroness Chapman, minister of state for international development of the United Kingdom and thanked her for the UK's longstanding partnership with Pakistan. He briefed her on the World Bank's 10-year Country Partnership Framework (CPF), focused on population and climate resilience.
