Pakistan 'drops' plan to issue Panda Bonds in 2025

ISLAMABAD: Pakistan’s prospects of issuing Panda Bonds in 2025 have ended, ARY News reported on Tuesday, citing sources.

According to sources, Pakistan had initially planned to issue $250 million worth of Panda Bonds in the Chinese capital market in December 2025, but now the plan has been dropped.

The government is now likely to attempt to launch the bonds in January or February 2026.

It is understood that the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) were expected to provide up to 95% guarantee for the Panda Bonds. Sources further stated that the ADB Board has already approved its guarantee.

However, approval from the AIIB Board is still pending, due to which the issuance plan has been revised. The AIIB Board meeting is likely to be held at the end of this month or next month, after which a final date for the bond issuance may be decided.

Sources revealed that this is the third time the issuance plan for the $250 million Panda Bonds has been altered.

The bonds will have a three-year tenure with a fixed interest rate, and Pakistan is expected to secure financing at a rate below 10%.

Finance Minister Muhammad Aurangzeb earlier stated that the Pakistan Panda Bond will be settled in Chinese yuan and is likely to increase between $200 million and $300 million.

The issuance is being structured with support from multifaceted development institutions, including the Asian Infrastructure Investment Bank (AIIB), which may provide credit guarantees.