Pakistan Plans Further Panda Bond Issuance of ¥5.45 Billion in China
Pakistan is preparing to raise another ¥5.45 billion from China’s capital market under its approved Panda Bond programme, Finance Minister Muhammad Aurangzeb has said.
The planned issuance follows Pakistan’s first-ever Panda Bond, through which the country raised ¥1.75 billion from Chinese investors.
Pakistan Has ¥5.45 Billion Remaining Under Programme
Speaking at the 2026 Asia-Pacific Climate Bonds Awards, Muhammad Aurangzeb said China’s National Association of Financial Market Institutional Investors (NAFMII) had approved a total Panda Bond programme worth ¥7.2 billion for Pakistan.
With ¥1.75 billion already raised through the initial issue, Pakistan has ¥5.45 billion remaining under the approved programme.
The finance minister said Pakistan intends to return to China’s capital market for additional bond issuances as it progresses with its financing plans.
First Panda Bond Attracted Strong Investor Demand
Pakistan’s inaugural Panda Bond was issued as a three-year sustainable bond with a coupon rate of 2.5 percent.
According to the finance minister, investor demand was strong, with orders reaching around three times the size of the bond issue.
The transaction marked Pakistan’s first entry into China’s domestic capital market and provided the country with access to a new source of financing.
Funds to Support Green and Social Projects
The sustainable Panda Bond is designed to finance projects with environmental and social benefits.
Aurangzeb said the proceeds would be directed toward areas including water, energy and healthcare, supporting investments linked to green development and social inclusion.
The bond was issued under Pakistan’s Sustainable Financing Framework, which provides guidelines for raising funds for eligible environmental and social projects.
Financing Aligned With Green Taxonomy
According to the finance minister, the bond framework is also aligned with the State Bank of Pakistan’s green taxonomy and the country’s climate prosperity plan.
The government views access to China’s capital market as an additional financing channel that can support sustainable development projects while diversifying Pakistan’s sources of external funding.
Pakistan’s planned future issuances will depend on market conditions and the government’s financing requirements under the approved Panda Bond programme.
