Bonds

Bonds

Pakistan is expected to sell a dual-tranche sovereign bond worth $750 million on March 23, 2006 that analysts said should ensure a favorable reception in the bond market. The 10-year tranche would be $500 million and the 30-year portion $250 million. Pricing is expected during New York trading hours on March 23, 2006. The sources said that the 10-year tranche was expected to be priced at around 7.125 percent, while the longer-dated tranche was expected to be sold at around 7.875 percent, the top end of the indicative yield range of 7.75 to 7.875 percent.

The bonds, comprising 10-year and 30-year tranches, had generated $1.5 billion in orders and a total size of as much as $1.25 billion had been anticipated for what is Pakistan’s third foray into the international debt market since 2004.

Government of Pakistan has been raising money from the international debt market from time to time.

Details of amount raised in various issues is as follows:-

1999 - $623 million

2004 - $500 million @ 6.75 Percent

2005 - $600 million worth Islamic bonds

2007 - $ 750 million @ 6.875 Percent worth Euro Bonds which were highly over subscribed