Pakistan receives $1b in Eurobond proceeds

Pakistan has received $1 billion raised by floating Eurobond in the international market last week, boosting the country’s foreign currency reserves to a four and a half year high of $18.2 billion and supporting the rupee to stay stable against the US dollar and other major currencies.

“State Bank of Pakistan (SBP) has received $1 billion proceeds of the government’s tap offering of its recently issued Eurobond. Accordingly, SBP’s FX reserves as on July 13, 2021 reached $18.2 billion, which is the highest level since January 2017,” the central bank said on its official Twitter handle on Wednesday.

About a week ago, the government floated five, 10 and 30-year bonds at interest rates ranging from 5.875-8.45%.

Data breakdown suggested that the country borrowed $300 million for five years with a return of 5.875%, $400 million for 10 years at 7.125% and $300 million for 30 years at 8.45%.