May 24, 2021 (MLN): Water and Power Development Authority (WAPDA) is all set to issue $500million Green Bonds in the global market to help accelerate the pace of expansion in water reservoirs.
The upcoming dollar-denominated issuance will be used to fund the Diamer Basha and Mohmand dams.
Pakistan intends to tap increasing investor demand for green debts from the global investors as it pursues plans to increase renewable and hydropower generation to 60 percent of total electricity by 2030.
In this regard, the bank that will support govt as Global Coordinator is J.P. Morgan while Deutsche Bank, J.P. Morgan and Standard Chartered Bank are Joint Bookrunners for this transaction. Habib Bank Limited appointed as Co-Manager to lock the deal with international investors.
The bonds will be issued for the tenor of seven or 10 years depending on the demand. The international market is promising for the launch of Eurobonds and it is expected that the bids will be received from UK, USA and Singapore.
The size of the green bond has not yet been firmed up as it will be determined by the appetite of the global market but there are signs that govt would likely opt to go ahead with the issuance of Eurobonds worth $500mn.
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