Pakistan has issued its first-ever Panda bond in China, raising funds worth USD 250 million, and marked its entry into the Chinese capital market.A Panda bond is a Chinese renminbi (RMB)-denominated bond issued by a foreign entity — which can be a sovereign government, international organisation or multinational corporation — and sold directly within China’s domestic capital market.The bond offered an interest rate of 2.5 per cent, with a three-year maturity, Khurram Schehzad, Advisor to Finance Minister Muhammad Aurangzeb, said on Thursday.“The inaugural Panda Bond is a 3-year fixed-rate instrument, making it Pakistan’s first-ever RMB-denominated sovereign issuance in China’s onshore capital market,” Schehzad wrote in a post on X.Geo News reported that Pakistan was closely watched by international investors when it launched Eurobond—an international debt instrument—last month to raise USD 750 million.Islamabad also raised an additional USD 3 billion in deposits from Saudi Arabia and returned USD 3.4 billion to the UAE.Pakistan also received USD 1.3 billion from the International Monetary Fund under two ongoing loan facilities.The development comes a day after Aurangzeb left for China to participate in the issuance ceremony of Pakistan’s inaugural Panda Bond.In a statement, Schehzad said the landmark Panda Bond issuance of RMB 1.75 billion (equivalent to USD 250 million) attracted overwhelming investor demand of over RMB 8.8 billion (approximately USD 1.26 billion), resulting in an oversubscription of more than 5 times.“Importantly, demand for the inaugural tranche alone exceeded Pakistan’s entire planned Panda Bond programme size of RMB 7.2 billion (USD 1 billion equivalent) – a powerful reflection of growing international investor confidence in Pakistan’s economic outlook and reform trajectory,” the statement said.The advisor said the issuance was more than just a financing transaction, as it marked Pakistan’s entry into China’s capital market and strengthened Pakistan-China financial cooperation.“The success of the Panda Bond sends a powerful signal to global investors that Pakistan’s economic recovery is gaining international recognition,” he added.The issuance is supported by the Asian Development Bank and the Asian Infrastructure Investment Bank, it added.