Ahmed & Qazi is delighted to have acted as exclusive Pakistan legal counsel in connection with the US$250 million debut Panda Bond issuance by the Ministry of Finance, Government of Pakistan in the Chinese onshore capital markets.
As Pakistan’s first-ever entry into China’s capital markets, the RMB 1.75 billion issuance reportedly attracted investor demand exceeding RMB 8.8 billion, resulting in oversubscription of more than 5x at a highly competitive 2.5% coupon rate.
The transaction marks a significant milestone for Pakistan’s sovereign and cross-border capital markets platform, opening access to the world’s second-largest domestic bond market and establishing an important new avenue for foreign currency funding and reserve diversification.
A&Q advised on all Pakistan law aspects of both the establishment of the Panda Bond programme and the inaugural issuance thereunder, including review and negotiation of the transaction and disclosure documentation, advising on regulatory and structural matters, advising on and procuring Pakistani law approvals and exemptions, coordinating with transaction stakeholders across jurisdictions, and issuing the Pakistan legal opinions required in connection with the programme and issuance.
We were pleased to work alongside a stellar deal team comprising Fangda Partners as Chinese legal counsel, HBL as financial advisor, China International Capital Corp, Standard Chartered, Bank of China and Hongta Securities as joint lead underwriters, and the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) as guarantors, represented by White & Case LLP and Global Law Office.
We congratulate all stakeholders on the successful completion of this landmark transaction, particularly the Ministry of Finance team for their efforts over the course of the transaction process.
The A&Q team was led by Nazif Ahmed (Head – Corporate), assisted by a team of associates at the firm.
