Pakistan has increased its three-year Eurobond issuance to $750 million after exercising the greenshoe option and placing an additional $250 million with global institutional investors, reflecting stronger-than-expected demand following its return to international capital markets after four years, Advisor to the Finance Minister Khurram Schehzad said on Monday.

The bond was initially issued at $500 million under the government’s Global Medium-Term Note (GMTN) programme, marking Pakistan’s first Eurobond issuance in four years.

Khurram Schehzad had earlier said the issuance attracted strong investor interest despite ongoing global economic and geopolitical uncertainties, signalling renewed confidence in Pakistan’s economic outlook.

According to the latest update, the successful exercise of the greenshoe option highlights sustained investor appetite and broadens participation by global institutional investors.

Officials said the upsizing would enhance the depth and liquidity of Pakistan’s sovereign yield curve and strengthen the country’s re-engagement with global capital markets.

The development is also expected to build momentum for future issuances under the GMTN Programme and provide a fresh pricing benchmark for upcoming international fundraising.

Schehzad had said the bond was priced at competitive terms, reflecting improving macroeconomic indicators and stabilising financial conditions.

He noted that the successful return to global markets marked a key milestone in the government’s broader strategy to diversify external financing sources and reduce reliance on short-term funding.

“The strong demand underscores renewed investor trust and reflects the government’s disciplined debt management approach,” he had said.

The proceeds from the Eurobond will support Pakistan’s external financing needs and help strengthen foreign exchange buffers.

Pakistan had also recently repaid $1.3 billion in Eurobond obligations on schedule, which officials said helped improve investor sentiment and reinforced the country’s credibility in international debt markets.

Preparations are also underway for the appointment of financial advisors for the upcoming GMTN and international Sukuk programmes, while progress on the Panda Bond initiative continues.

Pakistan’s return to the Eurobond market comes amid easing energy prices and gradual macroeconomic stabilisation, factors that have helped improve the country’s risk perception among global investors.