Government seeks global partners to expand borrowing plan

A day after securing $750 million through a three-year Eurobond at 6.975 per cent, the government has moved to line up international financial partners for upcoming borrowing, inviting proposals from global consortiums to manage and underwrite future transactions in capital markets over the next three years.

According to Dawn, officials said the selected firms would serve as underwriters, lead managers and bookrunners, with contracts awarded on the basis of the most favourable borrowing terms, including the lowest yield, coupon rate and overall cost. The arrangement is intended to give authorities flexibility to tap international markets in line with evolving external financing needs.

Under the plan, three separate consortiums will be appointed to oversee different funding streams. These include the renewal of Pakistan’s Global Medium-Term Note (GMTN) Programme and its Sukuk Trust Certificate Issance (TCI) Programme for another three-year period.

The frameworks will support a wide array of instruments such as Eurobonds, including ESG, green, gender and sustainability-linked bonds, alongside international Sukuk and rupee-denominated bonds settled in dollars.

The latest $750m Eurobond, issued earlier this week and led by a consortium headed by Standard Chartered Bank, carries a maturity of April 2029 and is aimed partly at refinancing obligations to the United Arab Emirates at comparable rates.

Khurram Schehzad, adviser to the finance minister, said the recent bond issuance was part of a broader roadmap, while the fresh request for proposals reflects a structured strategy to manage external financing through capital markets.

“This exercise is about selecting partners across multiple funding instruments,” he said, adding that decisions on when to access markets would depend on financing requirements and prevailing conditions.

According to officials, the timing and size of future issuances will be guided by market dynamics and advice from appointed transaction advisers. The selected firms will be responsible for end-to-end execution, including structuring deals, pricing, investor engagement, roadshows and allocation.

The first consortium, comprising up to five conventional international financial institutions, will handle Eurobond issuances, ensuring global investor outreach and strong order books.

A second group, also of up to five institutions but including at least one Islamic financial entity, will manage international Sukuk offerings.

The third consortium, consisting of up to three institutions, will oversee the issuance of rupee-denominated bonds settled in US dollars under the GMTN framework.

Interested institutions have been asked to submit both technical and financial proposals for each category, Eurobonds, Sukuk and rupee-based dollar-settled bonds, with bids due by May 25, when they will also be opened.