• ADB, AIIB to back $250m green bond for hospitals, power and water schemes
• CDWP clears projects worth Rs236bn

ISLAMABAD: Pakistan has secured formal assurances from the Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) for $285 million in guarantees to back its inaugural issue of Chinese Panda Bonds — aimed at raising around $250 million (equivalent in Renminbi) to finance two major hospitals in Islamabad, a national telemetry system, and upgrades to the power distribution network.

The plan is part of a broader initiative to raise $1bn equivalent through Panda Bonds, and the proposal came under discussion during a meeting of the Central Development Working Party (CDWP) for clearance of the required guarantees from AAA-rated multilaterals, given Pakistan’s sub-investment-grade sovereign credit rating.

Presided over by Planning Minister Ahsan Iqbal, the CDWP meeting approved the guarantees and also cleared seven development projects worth a total of Rs236bn. Of these, three smaller projects with a combined cost of about Rs8bn were approved, while four larger schemes worth Rs228bn were recommended for approval to the Executive Committee of the National Economic Council (Ecnec).

The meeting was informed that the $250m Panda Bonds are........

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