Aurangzeb highlights Panda, ESG bonds in key meetings at Washington: Finance Division

Business Recorder

23-04-2025

Finance Minister Muhammad Aurangzeb expressed Pakistan's interest in returning to the financial markets, including the issuance of Panda and ESG bonds, in key meetings with the delegations of Deutsche Bank and Moody's at Washington, a statement from the Finance Division said.
The meetings were held on the sidelines of the 2025 Spring Meetings of the IMF and the World Bank Group.
In meeting with the Deutsche Bank team led by Myriam Ouazzani, Managing Director for the MENA region, Aurangzeb 'expressed Pakistan's interest in returning to the financial markets, including the issuance of Panda and ESG (environmental, social, and governance) bonds, supported by the country's macroeconomic stabilisation and recent credit ratings upgrade', the statement said.
Panda Bonds are yuan-denominated debt instruments issued by foreign entities in China's onshore market. They provide an alternative financing mechanism for governments and corporations seeking to tap into China's vast liquidity while also supporting the internationalization of the Chinese yuan (RMB).
ESG bonds are fixed-income securities issued to raise capital for projects that align with the principles of environmental, social, and governance criteria. These bonds allow issuers to finance initiatives that have positive impacts in areas such as renewable energy, social equality, and corporate governance. For investors, ESG bonds offer a way to contribute to responsible investment strategies while generating returns from their investments, according to the information available on Nasdaq website.
In his meeting with Moody's commercial team in Washington, D.C Aurangzeb briefed the team on 'Pakistan's macroeconomic outlook, highlighting fiscal and current account surpluses, reduced inflation, a stable foreign exchange rate, and improved reserves', the Finance Division said.
'He also provided an update on the issue of the Panda Bond and agreed to continue discussions on possible collaboration in the future.'
In January this year, Aurangzeb said Pakistan would raise around $200 million to $250 million from Chinese investors through Panda Bonds.
Later in March, the finance czar said Pakistan was preparing to issue its first-ever Panda Bond in the Chinese market this calendar year (2025).
'I have been advocating, and I am very keen, that Pakistan—taking advantage of the second-largest and deepest capital market in the world—goes for an inaugural Panda bond,' the minister said in an interview with China Global Television Network (CGTN) then.