Foreign investment poised to reach $7.5 billion for this year

[Iconoclast]

Re: Foreign investment poised to reach $7.5 billion for this year

@Silly_Billy

Such huge interest in Pakistan’s bonds.

Pakistan sells $750 mln in bonds; demand good

Pakistan sold $750 million worth of 10-year bonds on Thursday, finding strong investor demand despite political turbulence ahead of the country’s presidential elections later this year. The new bond, which matures on June 1, 2017, has a coupon of 6.875 percent and was priced at par, with a spread of 200 basis points over comparable U.S. Treasury notes, the Pakistani government said.** The deal, managed by Citigroup, HSBC and Deutsche Bank, was seven times oversubscribed, with a total demand of $3.5 billion, said Pakistani Prime Minister Shaukat Aziz. “This is a vote of confidence by the international community in Pakistan’s policies and its economy,”** Aziz told reporters in Islamabad. Pakistan had initially offered to issue $500 million of the 10-year bond, but increased the deal to “accommodate quality investors,” Ashfaque Hasan Khan, an adviser to the prime minister, told Reuters in a phone interview. “That was the fastest book-building for Pakistan. We went for a road show on Monday, announced the deal and the initial price guidance on Tuesday, and we closed the deal today,” Khan said, adding that the new issue was evenly distributed between Asian, European and U.S. investors.

http://www.reuters.com/article/bondsNews/idUSN2435838020070524?rpc=401&

What are these bonds? And how does this thing work?