Finance Ministry seeks Chinese rating agency for Panda Bond issuance
FINANCE DIVISION AIMS TO SELECT QUALIFIED CHINESE CREDIT RATING AGENCY THROUGH COMPETITIVE BIDDING PROCESS
The Ministry of Finance (MOF) of Pakistan has announced plans to engage a Chinese Credit Rating Agency for its upcoming Panda Bond transaction in the Chinese capital markets. The Mof’s Debt Management Office issued a request for proposal on Saturday, inviting interested Chinese credit rating agencies to participate in the process.
To facilitate the Panda Bond issuance, the Finance Division aims to select a qualified Chinese credit rating agency through a competitive bidding process. Eligible agencies, already enlisted with PPRA on E-PADS software as vendors, are encouraged to submit their technical and financial proposals online by the deadline of July 29, 2024.
The selected agency will be tasked with providing essential services including issuing credit ratings for the Government of Pakistan before the transaction, assessing the Panda Bond itself, conducting annual rating surveillance, and fulfilling other necessary requirements to ensure the transaction’s success.
Additionally, the Ministry of Finance plans to engage a law firm from the People’s Republic of China (PRC) and a domestic legal firm to support the Panda Bond transaction. Prc-based firms interested in participating are invited to submit proposals by the same deadline of July 29, 2024. Domestic legal firms have an earlier deadline of July 15, 2024, to submit their proposals.
This initiative underscores Pakistan’s strategy to leverage the expertise of Chinese financial and legal institutions in its international financial operations, particularly in the realm of Panda Bonds.