Pakistan fetches US$2.5 bn from Euro bond rollout

ISLAMABAD: In a show of confidence in Pakistan from foreign investors, the Euro bonds floated by the country were able to fetch US$2.5 billion from the international market, ARY NEWS reported on Tuesday.

According to details, the country rolled out three separate Euro bonds in the international market with having a time frame between 5 years to 30 years and an interest rate ranging between six percent to 8.87 percent.

The five-year Euro bond rolled out with an interest rate of six percent was able to fetch US$1 billion while another bond for a duration of 10 years with an interest rate of 7.73 percent was able to yield US$1 billion.

The 30-year Euro bond floated by the country at 8.87 percent was able to garner US$500 million.

The floating of bonds in the international market has helped the country in increasing its foreign reserves by US$2.5 billion.

Besides this, the State Bank of Pakistan (SBP) has announced receiving the third tranche of the IMF loan, USD 498.7 million.

The International Monetary Fund (IMF) has approved the release of the next loan tranche of around $500 million for Pakistan on March 25.

According to the declaration released by the IMF, the approval was given after reviewing Pakistan’s progress in line with the program in the Board of Directors (BoD) meeting.

The board’s approval has paved the way for the release of $500 million third loan tranche. Out of the $6 billion, the IMF has already disbursed $1.45 billion in two tranches, bringing the total disbursements to $2 billion.

The IMF has appreciated Pakistan’s policies of bringing reforms in the economic sector.