In a significant development on May 28, 2021, Pakistan’s Water and Power Development Authority (WAPDA) launched its first green Eurobond (GEB), called Indus Bond, for 10 years to raise $500 million at a competitive price of about 7.5% interest rate.
The bond, denominated in Euros, will be the government’s first to fund environmental goals. On May 31, 2021, Prime Minister Imran Khan formally launched the Indus Bond to meet financial needs relating to the construction of Diamer-Basha and Mohmand dams. Issuance of green bonds globally is seen surging to $375 billion in 2021 by Moody’s Investors Service, after record sales in 2020. While Europe has led the way, countries from Singapore to Brazil plan to sell their first to tap buoyant investor demand.