Trucks drive past cargo shipping containers at the Evergreen shipping terminal at the Port of Los Angeles in Los Angeles, California on September 13, 2025. The US Supreme Court ruled on February 20 that Donald Trump exceeded his authority in imposing a swath of tariffs that upended global trade, blocking a key tool the president has wielded to impose his economic agenda. Photo: AFP
BEIJING:
Pakistan’s first Panda Bond has opened a lower cost yuan funding channel that may help the country diversify beyond traditional dollar and euro borrowing, an Habib Bank Limited (HBL) official told China Economic Net on Friday.
The RMB1.75 billion (about $250 million) issue was priced at 2.5%, marking Pakistan’s debut in China’s domestic bond market. “The pricing guidance was 2.5%,” said Farhan Talib, Head International of HBL. “That is perhaps the lowest rate at which Pakistan has ever been able to raise money from capital markets.”
Talib said the transaction gives Pakistan an alternative to traditional dollar? and euro?denominated borrowing and creates a basis for future issuance in yuan. Pakistan may return to the Chinese bond market soon after the debut issue, with discussions under way on a possible follow?up transaction within three to six months. “It is not about doing this one time,” Talib said. “It is about coming to this market again and again, on a needs basis and on an opportunity basis.”
HBL, which operates branches in Urumqi and Beijing, served as financial adviser alongside CICC. Talib said HBL helped structure the deal, coordinate with partners and support regulatory approvals from NAFMII and the People’s Bank of China.
The bond was backed by a 95% guarantee from the Asian Infrastructure Investment Bank and the Asian Development Bank, helping improve its rating and lower funding costs.
