The Asian Development Bank (ADB) successfully raised $11.4 million via the issue of Karakoram bonds; at a 7.5% semi-annual coupon, maturing in August 2023.
The ADB termed the ‘Karakoram’ bond as “an offshore bond denominated in Pakistan rupees and settled in US dollars, listed on a major stock exchange, and settled through an international central securities depository”.
“The bonds were arranged by Citigroup Global Markets and sold to European asset managers,” the statement added.
In this regard, ADB Treasurer Pierre Van Peteghem said:
Not only must we marry investor demand with market conditions to achieve optimal currency and interest rates, but we must also dedicate time and resources to a close dialogue with the government to achieve the best possible outcome,
Dr. Abdul Hafeez Shaikh stated that the ADB’s first-ever Pakistani rupee-linked ‘Karakoram’ bonds were “an excellent initiative”.
I am confident it will have significant mutually beneficial outcomes for Pakistan and ADB,Dr. Abdul Hafeez Shaikh
Dr. Reza Baqir – Governor State Bank of Pakistan (SBP) – also appreciated the ADB’s team and said:
ADB’s inaugural issue of Pakistan rupee-linked Karakoram bonds will help deepen the capital markets of Pakistan while channeling funding to vital economic sectors,
The source also informed ADB also appreciated SBP’s support in facilitating coordination with the Pakistani government to successfully start this program.