Pakistan Gets Low-Cost Financing in Debut Panda Bond Sale

Pakistan sold its first yuan-denominated notes in China’s onshore market, marking its cheapest foreign-currency bond offering ever.

The junk-rated country priced the 1.75 billion yuan ($258 million) of three-year panda bonds at a coupon of 2.5% Thursday, people familiar with the matter said. The bond was more than five times oversubscribed, they said, helping to drive the borrowing cost more than 500 basis points lower than Pakistan’s outstanding dollar notes, which carry an average coupon of 7.7%.