Pakistan to issue another $1 billion Eurobond this week

[Spectre]

How about you do your own research cup cake??? You have access to a lot of stuff. See KSE indexes, see market returns, see overall market performance. The market has doubled within the past 2+ years.

Return on investment and the GDP are TWO VERY different things!!!! Return on investment is I put money into a power plant for example and I got 30% back due to electric usage from that plant and profit after ALL expenses were paid. GDP on the other hand is Gross Domestic Product!!!! How do you calculate a country's GDP based on a project's ROI or ARR????

I don't have time to waste with you, we've been through these things before. Go do your research or learn economy and market. When your questions show me you have some basic command over the topic, we'll talk. Till then, you are welcome to keep filling up the white board with stuff that can't be understood and good luck with it

I believe you said average return of Pakistan is 30% - that implies it's GDP will be 30% no? Funny that is how maths works.

Anyway even taking your fallacious arguments at face value - can you give me one example of power sector company or govt enterprise having a 30% ROI?

What has KSE got to do with bond markets? Can you explain? Stock Markets can halve or double in growth just in a month depending on speculation and sentiments.

 

[Sky lord]

I believe you said average return of Pakistan is 30% - that implies it's GDP will be 30% no? Funny that is how maths works.

Anyway even taking your fallacious arguments at face value - can you give me one example of power sector company or govt enterprise having a 30% ROI?

What has KSE got to do with bond markets? Can you explain? Stock Markets can halve or double in growth just in a month depending on speculation and sentiments.

I simply fail to understand why you keep insisting on real facts and figures! Get with the program dude!

Edit - sorry cancel dude, I meant sir !

 

[ice_man]

There is nothing wrong with issuing bonds. China bought over a Trillion dollar's worth of US treasury bonds and that trillion, helped out the US economy in recovering faster.

In a country where the electricity doesn't get produced to the level needed, the CPEC is being built and the businesses are running at much lower capacity, and silly fools are protesting inside and outside Pakistan (Brooklyn drama a few days ago), what do you expect? The FDI will remain low. You guys need to play as a nation not a broken pieces of one puzzle that can't stand together for a day!!! The perception and image is everything and you guys don't think that by 500-1000 people going on their own, holding Pakistani flags is wrong in a foreign country and it ruins the image that many people recently worked so hard to build, JUST to get investments (NASDAQ and Dr. Lodhi's speech).

But the FDI will change rapidly once the electric generation starts.

The writer has NO freaking clue what he's talking about. This is JUST like everything else on this forum from anti Pakistani government's standpoint, paid or bribed serving IK and his buddies the best. To "sound" highly educated and an expert, the author used terms like "Energy Sector Reforms" and associated it to getting "capital". How the hell do you do that???

And WHICH Energy sector reforms? Pakistan had a well thought out plan to get cheaper and immediately available Gas from Iran. But Iran is under sanctions and its taking a LONG time to lift those sanctions. How's that Pakistani government's fault? They then went to Qatar as a backup and that's working but not to a degree that Iran's pipeline would've worked and helped.

Not to mention, whatever happened to the Generals and everyone else who ruled Pakistan for like 6 decades....they didn't realize that with growing population, this would be an issue? Why blame the current government for three years for everything, including the Earthquakes and Tsunami's caused by an active God???

We should ALL read the stuff before we post to make sure what we post, was written correctly and with expertise. Otherwise, you continue to waste everyone's time by adding "spices" to political favoritism!! None of this garbage helps the ordinary people of Pakistan!!!

Could someone also tell me how paying 8.25% back on a bond is more expensive than putting in multi-billion dollar investments (power plants), which then would take years to complete, and then produce electricity, and then break even and then, start giving a profit!!!! And who would finance such expensive deals from the West worth billions?

The bonds are the best option and the 8.25% interest on bonds, isn't much. Average return in Pakistan at this time is 20%+ - 35%. So the government STILL makes a ton of profit even after paying the interest back. That's VERY smart actually. Good work Pakistan . Something important to note, is that there has been so much trust put in by the American and other investors that they are accepting Pakistani paper (Bond) and are buying it through HARD CASH!!! That ONLY happens when you KNOW a country is solid and your money is safe with good returns.

Tell Russia or Iran to issue bonds to Europe and the US. I'd love to see who pays for it . You guys should be thankful for the work being done by the elected government, WHILE dealing with ALL problems of 70 years!!! This is NO easy work and no one EVER in Pakistan's ruling elite has done 25% of what the current government is doing.



Read my post right above. Yes it is PERFECTLY healthy to issue bonds. The Chinese bought the US treasury bonds worth over a Trillion dollars. We (the US) bought bonds (and still do) from all over the world and sell notes (which is considered a bond with different terms). And 7% or 8.5% means nothing. Its all subjective. A country where average return is around and sometimes over 30% (Pakistan's economy and market), paying back 8.5% is a joke. The Pakistan government can take the billion, invest it themselves, get a 35 or 30% return, and pay back 8.75% and not only get a billion cash by selling these, still make over 20% profit on this billion and return the 8.5%. I think that's HELLa smart way.

What everyone need to see is the fact that Pakistan has won international confidence so much that a Billion worth of bonds are ALL sold in just a couple of days. Like I said in my other post, ask Iran, Russia or even China to issue bonds right now and see what happens

I HOPE YOU ARE NOT SERIOUS :

The bonds are the best option and the 8.25% interest on bonds, isn't much. Average return in Pakistan at this time is 20%+ - 35%. So the government STILL makes a ton of profit even after paying the interest back. That's VERY smart actually. Good work Pakistan . Something important to note, is that there has been so much trust put in by the American and other investors that they are accepting Pakistani paper (Bond) and are buying it through HARD CASH!!! That ONLY happens when you KNOW a country is solid and your money is safe with good returns.

Source: Pakistan to issue another $1 billion Eurobond this week | Page 4

which sector of the public sector gives return of 20 to 35 %? let's see Steel mill in a loss and so is PIA.

no reforms under taken. and bond yield at a time when borrowing costs world over are at the lowest Pakistan issues a bond of 8.25%!

the yield is the same as last year march when PML N was in office hardly an year.

clearly shows that the "confidence" in the country's progress has faded in the eyes of the investors!

 

[RazorMC]

These idiots never learn.

Why are they so hell-bent on destroying Pakistan? Is this the financial expertise PML-N bragged about?

 

[xyxmt]

Why the Fk this Dar charsy so eager to float bonds at much higher rates than it can be borrowed from other lending agencies...7% !!!

 

[iPhone]

There is nothing wrong with issuing bonds. China bought over a Trillion dollar's worth of US treasury bonds and that trillion, helped out the US economy in recovering faster.

In a country where the electricity doesn't get produced to the level needed, the CPEC is being built and the businesses are running at much lower capacity, and silly fools are protesting inside and outside Pakistan (Brooklyn drama a few days ago), what do you expect? The FDI will remain low. You guys need to play as a nation not a broken pieces of one puzzle that can't stand together for a day!!! The perception and image is everything and you guys don't think that by 500-1000 people going on their own, holding Pakistani flags is wrong in a foreign country and it ruins the image that many people recently worked so hard to build, JUST to get investments (NASDAQ and Dr. Lodhi's speech).

But the FDI will change rapidly once the electric generation starts.

The writer has NO freaking clue what he's talking about. This is JUST like everything else on this forum from anti Pakistani government's standpoint, paid or bribed serving IK and his buddies the best. To "sound" highly educated and an expert, the author used terms like "Energy Sector Reforms" and associated it to getting "capital". How the hell do you do that???

And WHICH Energy sector reforms? Pakistan had a well thought out plan to get cheaper and immediately available Gas from Iran. But Iran is under sanctions and its taking a LONG time to lift those sanctions. How's that Pakistani government's fault? They then went to Qatar as a backup and that's working but not to a degree that Iran's pipeline would've worked and helped.

Not to mention, whatever happened to the Generals and everyone else who ruled Pakistan for like 6 decades....they didn't realize that with growing population, this would be an issue? Why blame the current government for three years for everything, including the Earthquakes and Tsunami's caused by an active God???

We should ALL read the stuff before we post to make sure what we post, was written correctly and with expertise. Otherwise, you continue to waste everyone's time by adding "spices" to political favoritism!! None of this garbage helps the ordinary people of Pakistan!!!

Could someone also tell me how paying 8.25% back on a bond is more expensive than putting in multi-billion dollar investments (power plants), which then would take years to complete, and then produce electricity, and then break even and then, start giving a profit!!!! And who would finance such expensive deals from the West worth billions?

The bonds are the best option and the 8.25% interest on bonds, isn't much. Average return in Pakistan at this time is 20%+ - 35%. So the government STILL makes a ton of profit even after paying the interest back. That's VERY smart actually. Good work Pakistan . Something important to note, is that there has been so much trust put in by the American and other investors that they are accepting Pakistani paper (Bond) and are buying it through HARD CASH!!! That ONLY happens when you KNOW a country is solid and your money is safe with good returns.

Tell Russia or Iran to issue bonds to Europe and the US. I'd love to see who pays for it . You guys should be thankful for the work being done by the elected government, WHILE dealing with ALL problems of 70 years!!! This is NO easy work and no one EVER in Pakistan's ruling elite has done 25% of what the current government is doing.



Read my post right above. Yes it is PERFECTLY healthy to issue bonds. The Chinese bought the US treasury bonds worth over a Trillion dollars. We (the US) bought bonds (and still do) from all over the world and sell notes (which is considered a bond with different terms). And 7% or 8.5% means nothing. Its all subjective. A country where average return is around and sometimes over 30% (Pakistan's economy and market), paying back 8.5% is a joke. The Pakistan government can take the billion, invest it themselves, get a 35 or 30% return, and pay back 8.75% and not only get a billion cash by selling these, still make over 20% profit on this billion and return the 8.5%. I think that's HELLa smart way.

What everyone need to see is the fact that Pakistan has won international confidence so much that a Billion worth of bonds are ALL sold in just a couple of days. Like I said in my other post, ask Iran, Russia or even China to issue bonds right now and see what happens

At this point, what GoP needed to do was come out and explain the reasoning and financial tactics behind issuing such high interest rate bonds. Like Obama and his administration did when they got the Chinese buying the Us bonds. I remember almost everyday there'd be a debate on whether it was a good move or a bad one.

But these guys aren't accustomed to answering their decisions to the public. They behave more like a monarchy than a democracy.

 

[Providence]

At this point, what GoP needed to do was come out and explain the reasoning and financial tactics behind issuing such high interest rate bonds. Like Obama and his administration did when they got the Chinese buying the Us bonds. I remember almost everyday there'd be a debate on whether it was a good move or a bad one.

But these guys aren't accustomed to answering their decisions to the public. They behave more like a monarchy than a democracy.

bonds issue and financial health assessment of capital instruments are a matured discourse in united states. There are ample academicians who can carry out this discussion on TV and media. I don't think that is the case with pakistan.

Most panelists would end up arguing superficially and end up criticising the govt move unreasonably.

 

[ziaulislam]

I HOPE YOU ARE NOT SERIOUS :

The bonds are the best option and the 8.25% interest on bonds, isn't much. Average return in Pakistan at this time is 20%+ - 35%. So the government STILL makes a ton of profit even after paying the interest back. That's VERY smart actually. Good work Pakistan . Something important to note, is that there has been so much trust put in by the American and other investors that they are accepting Pakistani paper (Bond) and are buying it through HARD CASH!!! That ONLY happens when you KNOW a country is solid and your money is safe with good returns.

Source: Pakistan to issue another $1 billion Eurobond this week | Page 4

which sector of the public sector gives return of 20 to 35 %? let's see Steel mill in a loss and so is PIA.

no reforms under taken. and bond yield at a time when borrowing costs world over are at the lowest Pakistan issues a bond of 8.25%!

the yield is the same as last year march when PML N was in office hardly an year.

clearly shows that the "confidence" in the country's progress has faded in the eyes of the investors!

would have been true if they were investment bonds which they are not..
they are just to shore up reserves

 

[AZADPAKISTAN2009]

The problem with stocks and bond from Pakistan is I as a consumer in western civilization don't have access to Pakisatni market

When I go to buy stocks or bonds no western bank offers me a choice to purchase Pakistani stuff ?

And searching on net there is 0% info on how a average expat Pakisatni can buy these comodities in small numbers

May be the problem lies right there !!!!

Pakisanis just don't have EASY access to bonds and stocks

I sent email to Karachi stock exchange for question on how to buy a stock if I am overseas

NO response


However if I wanted to buy a stock in US/Canada/Japanese/Australian/UK/Holland/Germany

2 clicks !!!

That just tell you something

 

[black-hawk_101]

Pakistan to issue another $1 billion Eurobond this week
By Shahbaz Rana
Published: September 23, 2015



ISLAMABAD: Pakistan will raise at least $1 billion from international debt markets in the next two days, choosing the easier but more expensive path of capital markets financing rather than implementing tough but necessary energy sector reforms and accessing the much cheaper financing available from international aid agencies.

Finance Minister Ishaq Dar left on Tuesday for the United States where he will lead the Pakistani team to launch a Eurobond. The bond will be priced on September 24 and is being underwritten by Citibank, Deutsche Bank and Standard Chartered Bank, which were appointed less than three weeks ago.

Finance Secretary Waqar Masood told Reuters that Pakistan was hoping to raise at least $500 million by selling its debt, but hinted that it could sell more. “We are not fixated on the size. We can definitely do more and we are open with regards to the tenor too,” he said.

Read: FDI remains flat, clocks in at $710.1 million

He hinted at issuing another bond, which was not part of original fiscal 2016 budget. “We will do a sukuk (Sharia-compliant bond) in … maybe the April to June quarter,” said Masood. Issuing a sukuk has become the government’s backup plan after it failed to implement the necessary energy sector reforms that would unlock funding from the World Bank, the Asian Development Bank, and Japan.

The Eurobonds are expected to be of either five or 10-year maturities, or possibly both. Based on the last issue, the interest rate is likely to be in the 7% range. By comparison, had the government implemented energy sector reforms, the country would have availed the same amount from the World Bank and ADB at a 2% interest rate for a period of 25 years.

The launching of the Euro bond, the third global issue in less than two years, highlights the government’s lack of commitment to structural reforms hampering economic growth, according to independent economists.

Although, the government had included $1 billion Eurobond in its annual budgetary estimates, it advanced the calendar and also decided to issue the sukuk. International lenders’ refusal to extend $1 billion in budgetary support before end of this month heightened the urgency to try luck in international debt markets.

The World Bank, ADB and Japan have withheld approval of $1 billion loan after they questioned the government’s commitment to reform the ailing energy sector. The government’s inability to implement promised reforms led to delay of approval of the loan, which was originally planned for April this year. It had hoped that the international lenders will disburse the amount before end of September, which is not happening, said sources familiar with the matter.

Under the Development Policy Credit-II, the WB was supposed to give $500 million in loan, the ADB $400 million loan and Japan $100 million in grant.

Earlier, in March last year, the government raised $2 billion by floating five and ten year dollar-denominated bonds at interest rates ranging between 7.25% and 8.25%. In the second attempt, the government issued five-year $1 billion Ijara-Sukuk bonds at 6.75%.

Read: Pakistan likely to issue $1b in Eurobonds in fiscal 2016

The government is raising the funds to meet the IMF’s conditions for the July-September period regarding increasing Net Foreign Assets, reduction in budgetary borrowings and increasing foreign currency reserves, the sources said.

As of September 11, the country’s official foreign currency reserves stood at $13.7 billion.

Published in The Express Tribune, September 23rd, 2015

What is current status of loan in Pakistan?

As Pakistan has about $17 Billion in reserves, Pak should invest in giving some money to Military to buy new things.

 

[Lavrentiy]

The problem with stocks and bond from Pakistan is I as a consumer in western civilization don't have access to Pakisatni market

When I go to buy stocks or bonds no western bank offers me a choice to purchase Pakistani stuff ?

And searching on net there is 0% info on how a average expat Pakisatni can buy these comodities in small numbers

May be the problem lies right there !!!!

Pakisanis just don't have EASY access to bonds and stocks

I sent email to Karachi stock exchange for question on how to buy a stock if I am overseas

NO response


However if I wanted to buy a stock in US/Canada/Japanese/Australian/UK/Holland/Germany

2 clicks !!!

That just tell you something

You want to invest in KSE from overseas. Let me help you.

A SCRA (Special Convertible Rupee Account) with a Pakistani bank is needed to cater to the needs of non-resident investors, who wish to trade freely in the shares quoted on the Stock Exchange of Pakistan (Secondary Market).

The Operation of SCRA accounts is up to an extent of remittances received from abroad or by transfer from a Foreign Currency Account maintained by non-resident investors in Pakistan. The balance available therein can be used for purchase of any shares quoted on the Stock Exchange of Pakistan (Secondary Market). The disinvestment proceeds against sale of previously purchased shares through SCRA can be credited in this account. The SCRA accounts can also be credited with dividend income against the shares held by non-resident investors.

The funds available in such accounts can be transferred outside Pakistan or credited to a foreign currency account of non-resident investor maintained in Pakistan at any time without prior approvals of SBP.

Accordingly, the movement of shares i.e. purchases & sales through SCRA are done through CDC Sub Account of non-resident investor open with the stock broker.
---------------------------------------------------------------
After you get a SCRA opened, open a trading account with a KSE broker. SCRAs can also be used to trade in government treasury securities. SCRAs can be opened with any AUTHORIZED DEALER banks. You will have to find it in your locality.

 

[AZADPAKISTAN2009]

The problem is that western banks do not "SHOW" option of Pakistani market
however , other world markets are available in Online Banking Model

If Pakistan can ensure its markets are connected to purchasing power of expat Pakistanis this would bring tones of revenue

Pakistanis overseas want to see our US dollar bank connected to PAkistani stock exchange

I want simplicity

Me in NORTH America , go to 1 company , put my dollar in , I buy Pakistani Stock Bam done ....
I don't wana open bank account in Pakistan or the process should be so smart and simple

I mean why should I chase a stock broker

When I purchase stock of North America company I chase no one

I go my online account click , stock , click buy .. move funds BAM finished 3 minutes I can buy 2000 stocks

 

[Lavrentiy]

The problem is that western banks do not "SHOW" option of Pakistani market
however , other world markets are available in Online Banking Model

If Pakistan can ensure its markets are connected to purchasing power of expat Pakistanis this would bring tones of revenue

Pakistanis overseas want to see our US dollar bank connected to PAkistani stock exchange

I want simplicity

Me in NORTH America , go to 1 company , put my dollar in , I buy Pakistani Stock Bam done ....
I don't wana open bank account in Pakistan or the process should be so smart and simple

I mean why should I chase a stock broker

When I purchase stock of North America company I chase no one

I go my online account click , stock , click buy .. move funds BAM finished 3 minutes I can buy 2000 stocks

There is some headache in opening these accounts but once you get done with them, trading is online just like everywhere. Account opening is not a daily routine activity so it's going to be a one time pain.