Business Recorder
ISLAMABAD: The Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have partnered to support Pakistan’s inaugural Panda bond issuance in China, aimed at financing the Sustainable and Green Infrastructure Project. The CNY1.75 billion (approximately USD258 million equivalent) sustainable development bond, issued on Friday, marks Pakistan’s debut in the Renminbi bond market. The bond marks a milestone in using guarantees to enable a developing member country to access the capital market in the People’s Republic of China (PRC). As the first bond with less than 100 percent guarantee coverage to achieve a domestic AAA rating, it sets a significant precedent for using partial credit guarantees to mobilise private sector capital for emerging markets. READ ALSO: Pakistan issues first Panda Bond in China’s onshore capital market The bonds were well-received by investors, reflecting confidence in Pakistan’s reform agenda and its commitment to sustainable development through green and socially inclusive infrastructure projects. “This transaction not only enabled Pakistan to access the PRC’s onshore bond market, but also allowed it to secure competitive pricing, supporting the country’s sustainable infrastructure and human capital development,” said ADB Director General for Central and West Asia Leah Gutierrez. “The panda bond issuance expands Pakistan’s access to international capital markets.” The proceeds from the bond will support a range of transformative subprojects aimed at addressing national priorities in water governance, energy reliability and efficiency, and health care capacity. By embedding sustainability objectives into public sector financing, this transaction underscores the Government of Pakistan’s strong commitment to fostering green and sustainable infrastructure development and reinforces the country’s active engagement with international capital markets. Copyright Business Recorder, 2026
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