Eurobonds skyrocket on IMF talks

KARACHI: Pakistan’s US dollar-denominated Eurobonds hit a record high price in the global market following an informal invitation from the newly elected government of Prime Minister Shehbaz Sharif to the International Monetary Fund (IMF) for talks on the last loan tranche of $1.1 billion and a new loan programme. The development spurred global investors, encouraging them to take new positions in rising foreign bonds on the belief that the nation would successfully meet all future foreign debt repayments, including the $1 billion Eurobond maturing in April 2024. According to JS Global Research, the 2024 Eurobond reached a new record high price of 99.36 cents each, followed by the 2025 notes soaring to a record high of 90.06 cents each. The bonds had previously dropped by around 5% due to inconclusive general election results held on February 8 in the country. Prior to securing the current $3 billion loan programme ending in March-April 2024, they were trading at less than 50 cents.