Pakistan approves issuance of ‘Panda bond’

The Pakistan Cabinet has recently approved the issuance of first-ever Chinese renminbi-denominated bonds to raise loans from China’s capital markets. The Panda bonds will be denominated in Chinese yuan. It is expected that the possible transaction size of bonds will be equivalent to $500 million in two different tranches. They will help the government diversify the investor base of capital market issuance and provide a source of raising renminbi (RMB). The size, tenure and pricing would be determined on the basis of market response at the time of issuance. Earlier, in March 2018, the Philippines became the first Association of Southeast Asian Nations member to issue Panda bond.