The Water and Power Development Authority (WAPDA) launched its first greenEurobond called the ‘Indus bond’.
The Indus bond is the first green Eurobond in the international capitalmarket by Pakistan. It was listed on the London Stock Exchange earlier thisweek on Monday.
The bond has a tenure of 10 years and brought the WAPDA $500 million at aprice of about 7.5 percent interest rate. It will be formally launched byPrime Minister Imran Khan on 31 May.
The launch of the Indus bond brought six times more subscriptions, of $3billion, from a number of international investors, including Goldman Sachs,Blackrock, Bluebay, Fidelity, Ashmore, Amundi, and UBS.——————————
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The WAPDA needs nearly $2.2 billion over five years to fund theDiamer-Bhasha and Mohmand dams projects. The funding requirement for thefirst two years is $1.1 billion, after which the authority may issue morebonds. According to an official statement, the Indus bond will initially beissued for only $500 million but the number of bonds will be graduallyincreased depending on the financial needs of the projects.
A report compiled by the WAPDA for the bonds states that the ten-yeardollar bond has been launched at a competitive price of 7.5 percent.“[This] is unprecedented, given Pakistan’s sovereign bond maturing in 2031has a coupon of 7.375 percent,” said the report.
