The bonds are oversubscribed by four times and are expected to have a nearly 8% annual return
Prime Minister Imran Khan launched Pakistan’s first Green Eurobond, called Indus bonds, in Islamabad. The government aims to raise US$500 million for Diamer Bhasha and Mohmand dams. The two dams will be able to provide the nation with 10,000 Megawatts of clean energy once they’re completed.
Imran said that the dams will help improve the environment of Pakistan. The country is expected to be among the ten worst hit by the global warming due to its agrarian economy. He also said that it will help improve the standard of living of the people.
Earlier, finance minister Shaukat Tareen said that green bonds are gaining attention worldwide since people are becoming more aware of the importance of a healthy environment. He said that Imran Khan’s policies are bearing fruits with acknowledgment from the international community.
The bond is oversubscribed by more than four times. It is expected to give an annual return of 7.5% to 8.0%, as per the people familiar with the matter. Both S&P and Fitch have rated the bond B-, with a stable outlook. As per reports, the government may be raising more green debt in near future.