Pakistan is set to launch its first-ever Panda Bond issuance, raising up to $250 million in yuan-denominated debt in China's onshore market. This initiative, part of a broader $1 billion programme, aims to diversify funding sources, lower borrowing costs, and strengthen foreign reserves.
The bonds will be guaranteed by the Asian Development Bank and the Asian Infrastructure Investment Bank.
After their financial crisis in 2023, Pakistan is utilising this and in part to replace a $3.5bn debt facility from the UAE. This represents a major shift in Pakistan's sovereign debt strategy towards strengthening ties with Chinese capital markets.
