Norton Rose Fulbright advises Government of Pakistan on landmark US$2bn bond issue

Global legal practice Norton Rose Fulbright has advised the Government of Pakistan on a US$2 billion bond issue. The transaction represents the largest ever international bond offering by Pakistan, and is its first international bond issuance since 2007.

Comprising a dual tranche of US$1 billion in five year bonds and US$1 billion in ten year bonds, the issuance received a strong response from investors including fund managers, banks, hedge funds, insurance companies and pension funds based in the US, Europe, Asia and the Middle East.

London based debt capital markets partners Farmida Bi and Peter Young advised the Government, supported by capital markets senior associate Andrew Coote and associate Jordina Walker. London tax partner Angela Savin and US tax partner Michael Flamenbaum, assisted by tax counsel Sheldon Elefant, advised on tax for the Government.

Farmida Bi, debt capital markets partner, Norton Rose Fulbright, commented:

“This is a landmark transaction for the Government of Pakistan and it was an immense privilege to be appointed by the Government. The enthusiasm the issuance has been met with by the international investment community demonstrates Pakistan’s ability to attract finance from a diverse range of investors.”

Peter Young, debt capital markets partner, Norton Rose Fulbright, said:

“Pakistan’s landmark US$2 billion bond issue sets a benchmark, allowing overseas investors to accurately gauge Pakistan’s economic environment. It also provides the depth required for further corporate issuers and the Government’s planned privatisation programme. This issue is a further example of an increased trend in emerging market sovereign issuers obtaining longer maturity US dollar denominated funding from the global debt capital markets.”

The bonds were issued on Tuesday April 15. Allen & Overy acted for the four lead managers, Bank of America Merrill Lynch, Barclays, Citi, and Deutsche Bank.

This is one of a number of sovereign bond issuances Norton Rose Fulbright’s global debt capital markets practice has advised on in recent months, including advising the Republic of Indonesia on its US$5 billion global sukuk programme.

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