By Rebecca Melvin
New York, Dec. 7 – Pakistan has priced $2.5 billion of notes in two tranches, including a $1 billion five-year Sukuk to yield 5 5/8% and a $1.5 billion 10-year note to yield 6 7/8%, according to a market source.
Pricing, which occurred Nov. 29, was tight compared to initial talk at 6% for the five-year paper and in the low 7% area for the 10-year notes (B3/B).
Deal size for the Rule 144A and Regulation S notes was significantly higher than the $500 million and $1 billion of Islamic or conventional bonds that was rumored in the market in August, but well below the $8 billion in orders received for the two issues that eventually priced.
Citigroup, Deutsche Bank, Dubai Islamic Bank, ICBC, Noor Bank and Standard Chartered were bookrunners for the Sukuk, and Citigroup, Standard Chartered, Deutsche Bank and ICBC were bookrunners for the 10-year notes.
Proceeds will be used general budgetary purposes.
| Issuer: | Pakistan
|
| Amount: | $2.5 billion
|
| Trade date: | Nov. 29
|
| Ratings: | Moody’s: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Five-year tranche
|
| Description: | Islamic bonds
|
| Amount: | $1 billion
|
| Maturity: | Five years
|
| Bookrunners: | Citigroup, Deutsche Bank, Dubai Islamic Bank, ICBC, Noor Bank and Standard Chartered
|
| Yield: | 5 5/8%
|
| Price talk: | 6%
|
|
|
| 10-year tranche
|
| Description: | Eurobond
|
| Amount: | $1.5 billion
|
| Maturity: | 10 years
|
| Bookrunners: | Citigroup, Standard Chartered, Deutsche Bank and ICBC
|
| Yield: | 6 7/8%
|
| Price talk: | Low 7% area
|
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