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#ConfidenceYield: Pakistan raises more than $2 billion in European bond issue

Pakistan has raised $2 billion from global capital markets through the issue of five- and 10-year Eurobonds on Wednesday, according to reports.

The latest dollar-denominated bonds have fetched the highest amount that Pakistan has ever raised in a single attempt from international investors.

According to brokers, the government raised a total of $1 billion through 5-year bonds at a fixed rate of 7.25%  while the remainder was generated through 10-year bonds at a fixed rate of 8.25%: both rates of interest are significantly higher than government bonds elsewhere in the world reflecting the continued instability in Pakistan.

Brokers however say that the bonds being snapped up in a matter of hours is testament to the confidence that international investors have in the future of the economy of Pakistan.

The bond had been oversubscribed several times.

Most investors were from the United States, as they bought 59% of the five-year bonds and 61% of the 10-year bonds.

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