Prime Minister Shehbaz Sharif attended a market-opening ceremony at the London Stock Exchange (LSE) on Tuesday, 29 September 2026, marking Pakistan's $3 billion dual-tranche sovereign Eurobond issuance. The bonds were sold earlier in September, rather than at the London ceremony. Based on the announced issue sizes and coupon rates, the two tranches carry about $230 million in combined annual coupon payments.
What happened at the London Stock Exchange
The ceremony took place at the London Stock Exchange in Paternoster Square. The LSE described the event as marking Pakistan's $3 billion dual-tranche sovereign Eurobond issuance.
Dawn, citing the Prime Minister's Office (PMO), reported that Sharif became the first Pakistani prime minister to open trading at the exchange. The PMO also said he met executives from major international financial institutions during his visit and discussed Pakistan's economy, reforms and investment opportunities.
Statements about improving investor confidence and Pakistan's economic reform momentum are government assessments. The measurable parts of the transaction include the amount raised, the two maturities, their coupon rates and the reported size of investor orders.
The $3 billion was raised earlier in September
The London ceremony should not be confused with the actual bond sale. Pakistan completed the $3 billion transaction earlier in September, with the Ministry of Finance announcing the result on 3 September.
The government issued $1.75 billion of 5.5-year Eurobonds carrying a 7.5 percent coupon and another $1.25 billion of 10-year Eurobonds carrying a 7.9 percent coupon.
The Ministry of Finance described it as Pakistan's largest international bond issuance in a single transaction. It also said the deal was the first issuance under the country's renewed Global Medium-Term Note (GMTN) programme and formed part of a strategy to diversify financing sources, extend maturities and reduce refinancing and rollover risks.
Terms of the two Eurobond tranches
| Tranche | Amount | Tenor | Coupon | Approx. annual coupon |
|---|---|---|---|---|
| September 2026, tranche 1 | $1.75bn | 5.5 years | 7.5% | $131.25m |
| September 2026, tranche 2 | $1.25bn | 10 years | 7.9% | $98.75m |
| Total | $3bn | — | — | about $230m |
The annual coupon figures in the table are Origin Pakistan calculations based on the announced principal amounts and coupon rates.
What the coupons mean for Pakistan
Applying the announced coupon rates to the amounts issued gives annual coupon payments of about $131.25 million on the $1.75 billion tranche and $98.75 million on the $1.25 billion tranche. Together, that comes to approximately $230 million a year.
Across the full $3 billion issuance, that is equivalent to a weighted-average coupon of about 7.67 percent.
The $230 million figure is a coupon calculation, not a complete measure of the government's borrowing cost. It does not include factors such as issuance expenses, any difference between issue price and face value, or other transaction costs. It also should not be interpreted as the amount Pakistan will repay in total over the life of the bonds.
Investor orders reached nearly $6 billion
The Ministry of Finance said the transaction attracted nearly $6 billion in orders, almost twice the $3 billion ultimately issued, from institutional investors across international markets.
The government presented the size and breadth of the order book as evidence of renewed investor confidence in Pakistan. The order figure shows demand for the securities during the offering, while the broader interpretation of that demand as confidence in Pakistan's economic outlook is the government's assessment.
How the September issue compares with April
Pakistan had already returned to international bond financing earlier in 2026. In April, the government initially raised $500 million through a three-year Eurobond carrying a 6.975 percent coupon. The issue was subsequently increased to $750 million through a $250 million green-shoe option after stronger investor demand. The bond matures in April 2029.
| Issue | Amount | Tenor | Coupon | Approx. annual coupon |
|---|---|---|---|---|
| April 2026 Eurobond | $750m | 3 years | 6.975% | about $52.3m |
| September 2026, tranche 1 | $1.75bn | 5.5 years | 7.5% | about $131.25m |
| September 2026, tranche 2 | $1.25bn | 10 years | 7.9% | about $98.75m |
The September coupons are higher than the 6.975 percent coupon on the April issue, but the transactions are not directly comparable. The April bond has a three-year maturity, while the September issuance extends to 5.5 and 10 years, and the securities were priced under different market conditions.
The difference in coupon rates therefore should not, by itself, be treated as evidence that Pakistan's overall borrowing conditions improved or deteriorated between April and September.
Why the longer maturities matter
The September transaction gave Pakistan access to substantially longer-dated international financing than the three-year Eurobond issued in April. The Ministry of Finance said extending maturities and reducing refinancing risk are among the objectives of its sovereign liability-management strategy.
A longer maturity can reduce the need to refinance the same principal in the near term, although investors may demand a higher return for lending for longer periods. That is one reason coupon rates across bonds with different maturities should not be compared in isolation.
What is established and what is interpretation
The transaction's main reported terms are clear: Pakistan raised $3 billion through two tranches, with $1.75 billion carrying a 7.5 percent coupon over 5.5 years and $1.25 billion carrying a 7.9 percent coupon over 10 years. The Ministry of Finance reported nearly $6 billion in investor orders.
From those announced terms, Origin Pakistan calculates combined annual coupon payments of approximately $230 million.
Claims that the transaction demonstrates renewed confidence in Pakistan's economy or validates the government's reform programme are interpretations advanced by government officials. The transaction and order book provide measurable market data, but their broader economic significance depends on factors including future financing conditions, debt management, foreign-exchange availability and Pakistan's wider fiscal position.
