ISLAMABAD: The Ministry of Finance (MoF) of Pakistan has unveiled plans to partner with a Chinese credit rating agency for its forthcoming Panda Bond issuance in Chinese capital markets. On Saturday, the MoF’s Debt Management Office released a request for proposal, inviting qualified Chinese credit rating agencies to participate.
The Finance Division is focused on selecting a suitable Chinese credit rating agency through a competitive bidding process to facilitate the Panda Bond issuance. Eligible agencies, listed with PPRA on E-PADS software as vendors, are encouraged to submit their technical and financial proposals online by July 29, 2024.
The chosen agency will be responsible for several critical tasks: issuing credit ratings for the Government of Pakistan before the transaction, evaluating the Panda Bond, performing annual rating surveillance, and meeting other requirements to ensure the success of the issuance.
In addition, the Ministry of Finance intends to engage a law firm from the People’s Republic of China (PRC) and a domestic legal firm to support the Panda Bond transaction. PRC-based law firms interested in this opportunity should submit their proposals by July 29, 2024. Domestic legal firms have an earlier deadline of July 15, 2024, for proposal submission.
This initiative highlights Pakistan’s strategy to utilize the expertise of Chinese financial and legal institutions in its international financial endeavors, particularly concerning Panda Bonds.
