Nomura sees upside in Pakistan’s dollar bonds after IMF agreement

News Image

MG News | July 14, 2022 at 01:48 PM GMT+05:00

0:00

July 14, 2022 (MLN): Pakistan’s dollar bonds maturing in 2031 and 2051 are due for a bounce of at least about five points after the IMF deal, Nicholas Yap, Head of Asia credit desk analysts at Nomura said, quoted by Bloomberg.

“But there’s limited upside beyond that considering fragile EM sentiment and the country’s weak fiscal and external position,” Nicholas Yap said.

Another concern is elevated political uncertainty with the current ruling coalition comprising multiple parties with divergent interests, which may complicate the implementation of IMF- mandated reforms, especially with elections due by mid-2023.

IMF team, led by Nathan Porter has reached a staff-level agreement (SLA) with the Pakistan authorities for the conclusion of the combined seventh and eighth reviews of the Extended Fund Facility (EFF)-supported program.

Accordingly, the country will receive $1.177 billion after the approval of the IMF’s Executive Board, bringing total disbursements under the program to about $4.2 billion.

Nomura, the global investment banking powerhouse based in Japan, is overweight on Pakistan’s 2022 Sukuk, which has a high likelihood to be redeemed at par in December. It’s currently trading near 91, it added.

The IMF program “should alleviate fears of a near-term default scenario and unlock funding from other multilateral lenders,” the note said.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 134,299.77
290.06M
0.39%
517.42
ALLSHR 84,018.16
764.12M
0.48%
402.35
KSE30 40,814.29
132.59M
0.33%
132.52
KMI30 192,589.16
116.24M
0.49%
948.28
KMIALLSHR 56,072.25
387.69M
0.32%
180.74
BKTi 36,971.75
19.46M
-0.05%
-16.94
OGTi 28,240.28
6.19M
0.21%
58.78
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,140.00 119,450.00
115,635.00
4270.00
3.75%
BRENT CRUDE 70.63 70.71
68.55
1.99
2.90%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
1.10
1.14%
ROTTERDAM COAL MONTHLY 108.75 108.75
108.75
0.40
0.37%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 68.75 68.77
66.50
2.18
3.27%
SUGAR #11 WORLD 16.56 16.60
16.20
0.30
1.85%

Chart of the Day


Latest News
July 11, 2025 at 10:56 PM GMT+05:00

Gold price in Pakistan rises Rs2,300 per tola


July 11, 2025 at 05:49 PM GMT+05:00

PKR gains 10 paisa per USD


July 11, 2025 at 05:41 PM GMT+05:00

PSX Closing Bell: Bulls Serenade The Bourse


July 11, 2025 at 05:06 PM GMT+05:00

UBL doubles profit to Rs65bn in 1HCY25


July 11, 2025 at 04:19 PM GMT+05:00

Ideal Spinning Mills to exit spinning business



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg