Pakistan upsizes Eurobond to $750m through greenshoe option

April 20, 2026 (MLN): Pakistan has upsized its Eurobond issuance to $750 million after exercising a greenshoe option, as overwhelming investor demand prompted authorities to expand the deal beyond its original $500 million.

The upsizing reflects stronger-than-expected investor demand, reinforcing confidence in Pakistan's economic outlook and market re-entry,  according to Khurram Schehzad on his X account.

The greenshoe clause, a standard overallotment mechanism allowing issuers to raise additional capital when subscriptions exceed the initial offering, was exercised following strong order books  lifting the total transaction size by $250 million and marking one of the most confident re-entries into international capital markets in the country's recent history.

The bond, priced at a coupon of 6.975% per annum and maturing in April 2029, was arranged by Standard Chartered Bank as sole bookrunner under Pakistan's Global Medium-Term Note (GMTN) programme.

Despite a backdrop of global economic uncertainty and geopolitical tensions, investors piled in decisively, reflecting a meaningful shift in sentiment toward Pakistan's macroeconomic outlook and ongoing reform progress.

That the deal was upsized by 50% speaks volumes about where institutional confidence currently stands.

The $750 million raise significantly strengthens Pakistan's external liquidity position and paves the way for more consistent access to international financing.

The upsizing enhances Pakistan's presence in global capital markets while building momentum for future issuances under the GMTN programme, and contributes to enhanced depth and liquidity in Pakistan's sovereign yield curve, a key benchmark enabling future borrowings at more competitive rates.

Driven by incremental investor demand and the successful execution of the greenshoe option, the transaction firmly reinforces Pakistan's re-engagement with global capital markets.

Strong demand and sub-7% pricing suggest confidence is genuinely returning  but sustaining that momentum will depend on policy continuity, IMF programme alignment, and disciplined external account management. 

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