The Pakistan Credit Rating Agency Limited (PACRA has entered into a Memorandum of Understanding with Lianhe Ratings Global Limited, the international arm of one of China’s largest credit rating groups, to explore cooperation in sustainable finance ratings and assessments, as well as potential Panda Bond issuances by Pakistani borrowers.
Under the agreement, the two rating agencies will explore cooperation in green and sustainability-linked financial instruments, research and knowledge sharing, and rating-related services for potential Panda Bond issuances by Pakistani sovereign and corporate issuers.
The partnership could help expand opportunities for Pakistani entities to access China’s Panda Bond market, which allows foreign issuers to raise funds in China’s domestic bond market. For PACRA, the proposed cooperation will help us build expertise and services in sustainable finance and green financing instruments.
PACRA disclosed the agreement to the Pakistan Stock Exchange on September 1, saying that specific initiatives under the MOU will depend on the signing of definitive agreements. The company said any material developments resulting from the cooperation will be disclosed as required under applicable regulations.
Lianhe Global is the international arm of a major Chinese credit rating group, giving the proposed cooperation a cross border dimension as Pakistani companies and the sovereign government explore alternative sources of financing.
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