Prime Minister Launches The First Green Eurobond of Pakistan

Prime Minister Imran Khan today released the first Green Eurobond in Pakistan formally (Monday).

The Water and Power Development Authority (WAPDA) has also issued Indus bonds to raise $500 million at 7.5 per cent from overseas markets.

This offering has concluded a significant transaction for the electricity industry in Pakistan and is also the first green bond issued in Pakistan.

International investors had responded positively with bids of 6 times the amount that was to be raised ($3 billion) when the bonds were launched.

The WAPDA mainly issued the Diamar Bhasha and Mohmand Dams Green Eurobond for the sake of increasing finance.

The PM praised WAPDA for its successful launch during their speech at the launch event, saying that in 10 years, the government wants to build ten barracks to supply the country's water requirements and generate clean energy.

He also applauded the progress done over the last two and a half years in constructing the water reservoirs. He highlighted that 10,000 MW of clean and environmentally friendly power will be produced in the country.

The PM highlighted that Pakistan is one of the most climate change affected countries. Under the Ten trillion tree tsunami programme, the Government is embarking on a tree plantation push. The one billion trees were planted successfully, he added 15 unique national parks to protect and preserve the natural environment.

Finance Minister Shaukat Tarin also talked about green bonds internationally as governments redirect their policies towards joining the rally to zero omission.

"World issued 107 billion dollars of such liabilities in the first quarter of this year alone and the majority in the Asia Pacific," he said, "and throughout that year, it is estimated that global liabilities will be 450- 500 billion dollars far greater than the previous year."

He also said that Pakistan has been acknowledged worldwide in its efforts to address environmental concerns. He noted that projects like Diamer Bhasha and Mohmand Dams are crucial to the country's future requirements in electricity, water, and food safety.

He stated, "Sub-Sovereigns bond issuances are made in the private sector worldwide, and they provide the financing needs with capital market solutions. For Pakistan, however, this is the first transaction to be promoted and should be encouraged more in future as the economy starts to flourish."

The Minister also added that Pakistan must meet Pakistan's pledged UN commitments to issue green bonds and use its earnings towards ecologically beneficial initiatives.