Business

Pakistan eyes Panda bonds debut by this year: FinMin

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Kashif Zia

1 year ago

HONG KONG: Finance Minister, Muhammad Aurangzeb, has revealed plans to debut yuan-denominated panda bonds this year to shore up finance between $200-$250 million from Chinese investors.

During an interview with Bloomberg on Monday, FinMin said the government remains optimistic about meeting the International Monetary Fund’s (IMF) bailout loan terms.

“The country is very keen to tap the Panda bonds and the Chinese capital markets,” Aurangzeb said on the sidelines of the two-day Asian Financial Forum 2025 in Hong Kong.

He announced these plans after Pakistan’s sovereign rating was recently upgraded by all three credit agencies — Moody’s, S&P Global Ratings (S&P), and Fitch Group.

“Aurangzeb sees further upgrades and the challenge is to get into a “single-B” category, which allows the country to return to global bond markets to raise funds,” Bloomberg reported, citing Aurangzeb.

In a separate interview with the South China Morning Post, Muhammad Aurangzeb said Pakistan was looking to explore more joint ventures with Hong Kong and secondary listings for its firms in the city.

The finance czar made these remarks ahead of a meeting with Chief Executive Hong Kong John Lee Ka-chiu on Monday.

In an interview, Aurangzeb also said he would express his interest to Lee in the possibility of having a “Hong Kong delegation visit Pakistan” to identify areas for closer collaboration.

Furthermore, he said exploring opportunities for Pakistani companies to list in Hong Kong would be a high priority during his meeting with the chief executive.

Ahead of a meeting with the city’s executive leader, the top finance official said Pakistan also plans to explore opportunities for Pakistani companies to collaborate for primary and secondary listings in the Hong Kong Stock Exchange (HKEX).

“For instance, I think it can be a real win-win, not only in terms of the investment that we expect back in Pakistan, but also outward investment,” he said.

Aurangzeb said Pakistani companies and banks had traditionally opted for secondary listings on the London Stock Exchange, noting that local firms had not been aware of Hong Kong’s reputation for international capital raising.

“I would say that Hong Kong can certainly do more in promoting itself as a destination for companies to raise capital,” he told the publication.

The finance minister is in Hong for the two-day Asian Financial Forum in Hong Kong from January 13-14, 2025, where he will discuss further avenues for collaboration, including the possibility of a Hong Kong delegation visiting Pakistan to explore new business areas.

Kashif Zia