Moody’s B3 credit rating: Wapda to market $500m Green Euro Bond sans govt guarantee

ISLAMABAD: In a major development, Moody's Investors Service Tuesday equalized Wapda with the Government of Pakistan in terms of credit rating by assigning corporate family rating (CFR) of B3 to the state-run entity.

“Now Wapda will be able to float 10-year Green Euro Bond on the international market to generate $500 million without sovereign guarantee of the federal government to meet foreign exchange needs required for its mega and strategic projects of Diamer- Bhasha and Mohmand Dams,” Wapda’s Member Finance told The News while highlighting the credit rating of B3 extended by Moody’s.

“Diamer-Bhasha and Mohmand Dams -- the projects of paramount importance -- will not only ensure water security, but also the energy security.” He said international credit rating agencies such as Moody's, Standards & Poor’s and Fitch had equalized Wada with the Government of Pakistan in terms of rating and this had happened for the first time in the history of Pakistan.

“We will float the bond either by end of November or at the very outset of December 2020 and this will be the first time in Pakistan’s history that Wapda will market its bond on the international market without any sovereign guarantee of the Government of Pakistan. We will adopt the staggered financing strategy to reduce the interest cost.”