ADB, AIIB support 1st Panda Bond issuance for green projects in Pakistan

The Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have collaborated to support Pakistan’s first issuance of a Panda bond to finance its Sustainable and Green Infrastructure Project

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 15th May, 2026) The Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have collaborated to support Pakistan’s first issuance of a Panda bond to finance its Sustainable and Green Infrastructure Project.

According to ADB press release received on Friday, the CNY 1.75 billion (approximately $258 million equivalent), sustainable development bond marks Pakistan’s debut in the renminbi bond market.

The bond marks a milestone in using guarantees to enable a developing member country to access the capital market in the People’s Republic of China (PRC).

As the first bond with less than 100% guarantee coverage to achieve a domestic AAA rating, it sets a significant precedent for using partial credit guarantees to mobilize private sector capital for emerging markets.

The bonds were well-received by investors, reflecting confidence in Pakistan’s reform agenda and its commitment to sustainable development through green and socially inclusive infrastructure projects.

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“This transaction not only enabled Pakistan to access the PRC’s onshore bond market, but also allowed it to secure competitive pricing, supporting the country's sustainable infrastructure and human capital development," said ADB Director General for Central and West Asia Leah Gutierrez. "The panda bond issuance expands Pakistan's access to international capital markets."

The proceeds from the bond will support a range of transformative subprojects aimed at addressing national priorities in water governance, energy reliability and efficiency, and health care capacity.

By embedding sustainability objectives into public sector financing, this transaction underscores the government of Pakistan’s strong commitment to fostering green and sustainable infrastructure development and reinforces the country’s active engagement with international capital markets, the statement added.