Saturday, April 20, 2024

First Green Eurobond Launched by WAPDA for $500 Million

On Thursday, Water and Power Development Authority (WAPDA) raised $500 million from international markets at a rate of 7.5 percent, marking a historic deal for Pakistan’s power industry as well as the country’s first green bond sale.

According to official familiar with the matter, the bond issue was also oversubscribed by more than four times, garnering $2.2 billion and lowering the initial guidance level, which predicted a rate close to 8%.

The bond sale is being viewed as yet another positive event for the administration, which recently revealed that the country’s economy increased at a rate of 3.94 percent, a significant turnaround from the previous year’s decline.

As per Wapda Chairman Muzammil Hussain, who was mentioned in Bloomberg before of the bond issuance, it also allows Pakistan breathing room as it attempts to raise more environmentally friendly loans over the following two years.

The revenues from the bond will be utilized to fund the Diamer Basha and Mohmand dams, according to Hussain.

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