Government bond issue sees A&O continue its love affair with Pakistan

Allen & Overy

(A&O) has become the only law firm to work on the entire recent series of bond issues by the Islamic Republic of Pakistan, having advised on an $800m (£456.7m) global securities offering.

The transaction was Pakistan’s first Rule 144A transaction in more than a decade and the first time it has issued a security with a maturity of 30 years.

The notes were issued in two tranches: a $500m (£285.4m) 10-year issue and a $300m (£171.3m) 30-year note. The notes have coupons of 7.125 per cent and 7.875 per cent respectively and are expected to be admitted to the Luxembourg Exchange’s (LSE) official list and admitted to trading on the Euro MTF market of the LSE.

Roadshows for the transaction were held in the US and Asia and subscriptions for the bonds were in excess of $1bn (£570.9m).

A&O, led by capital markets partner Roger Wedderburn-Day and Hong Kong-based partners Andrew Harrow and David Johnson, advised Citigroup, Deutsche Bank and JPMorgan as joint bookrunners and lead managers.

The bond is the latest in a series of issues that have seen Pakistan try to diversify its investor base. In 2004, Pakistan issued a Reg S bond and last year the country launched its debut Sukuk, or sharia-compliant, offering. A&O is the only law firm to act on all three transactions.

The lead managers were advised by Kabraji & Talibuddin on Pakistani law. The government of Pakistan was advised by Arnold & Porter London-based partner Jeremy Willcocks and Washington DC-based Whitney Debevoise on English and US law, and by the Ministry of Law, Justice and Human Rights on Pakistani law.