Manila, May 15 (AseanAll) — The Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have collaborated to support Pakistan’s first issuance of a Panda bond to finance its Sustainable and Green Infrastructure Project. The CNY 1.75 billion (approximately $258 million equivalent), sustainable development bond, issued today, marks Pakistan’s debut in the renminbi bond market.
The bond marks a milestone in using guarantees to enable a developing member country to access the capital market in the People’s Republic of China (PRC). As the first bond with less than 100% guarantee coverage to achieve a domestic AAA rating, it sets a significant precedent for using partial credit guarantees to mobilize private sector capital for emerging markets. The bonds were well-received by investors, reflecting confidence in Pakistan’s reform agenda and its commitment to sustainable development through green and socially inclusive infrastructure projects.
“This transaction not only enabled Pakistan to access the PRC’s onshore bond market, but also allowed it to secure competitive pricing, supporting the country's sustainable infrastructure and human capital development," said ADB Director General for Central and West Asia Leah Gutierrez. "The panda bond issuance expands Pakistan's access to international capital markets."
The proceeds from the bond will support a range of transformative subprojects aimed at addressing national priorities in water governance, energy reliability and efficiency, and health care capacity. By embedding sustainability objectives into public sector financing, this transaction underscores the Government of Pakistan’s strong commitment to fostering green and sustainable infrastructure development and reinforces the country’s active engagement with international capital markets.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
