The Asian Development Bank (ADB) will issue bonds denominated in Pakistani rupee up to a value of $200 million equivalent to support local currency operations and develop the capital market.
The bank announced this in a tweet saying:
Pakistan approves ADB’s issuance of Pakistani rupee-linked bonds: ADB will issue bonds denominated in Pakistani #rupee up to a value of $200 million equivalent to support #localcurrency operations and develop #capitalmarkets.
The Economic Coordination Committee (ECC) of the Cabinet on August 12, 2020, allowed the ADB to launch offshore Pakistan Rupee (PKR)-linked bonds of up to $200 million to non-residents based on conducive market conditions.
The local currency proceeds of the bonds will be used for financing long-term infrastructure and energy projects in Pakistan.
Fitch Solutions forecast rupee to average Rs. 171.15 versus the US dollar next year as soft demand for Pakistani assets by foreign investors will continue to cool demand for the local currency. Fitch Solutions estimates that the rupee weakened around 7.1 percent against the US dollar till last month.