Pakistan Water and Power Development Authority is preparing for a green US dollar bond offering that could come to the market by the end of this month, according to a funding official.
The government-owned issuer is planning a 10-year Reg S issue and has mandated three bookrunners – Deutsche Bank, JP Morgan and Standard Chartered – for the potential deal, alongside Habib Bank as a co-manager.
The deal is set to be the first green Eurobond out of Pakistan.
WAPDA, rated B3 by Moody's, expects to use the proceeds for its projects that require payments in foreign currency.
The utility builds, operates and maintains hydropower generation assets to produce affordable and clean electricity, and builds water storage facilities to help address the country's water challenges, according to Moody's. The B3 rating is equivalent to that of the Pakistan government.
Separately, the Pakistan government has also budgeted to raise US$1.5bn from the sale of international bonds or sukuk and aims to come to market by the end of this month or in the second quarter, depending on market conditions, said a source at the finance ministry.
Five banks, including Citigroup, Deutsche Bank, JP Morgan and Standard Chartered, are rumoured to have been mandated for the sovereign deal.