The Pakistan Credit Rating Agency Limited (PACRA) has signed a Memorandum of Understanding (MoU) with Lianhe Ratings Global Limited (Lianhe Global), the international arm of one of China’s major credit rating groups, to explore cooperation in sustainable finance and related financial market activities.
Under the agreement, PACRA and Lianhe Global will explore collaboration in sustainable-finance ratings and assessments, along with green and sustainability-linked financial instruments. The partnership is also expected to cover research, knowledge-sharing, and other rating-related services.
A key area of the proposed cooperation is the potential issuance of Panda Bonds by Pakistani sovereign and corporate issuers. Panda Bonds are renminbi-denominated bonds issued in China by foreign entities, offering Pakistani issuers a potential route to access Chinese capital markets.
The MoU also provides scope for both organisations to exchange expertise and research related to credit ratings and sustainable finance. However, specific initiatives under the agreement will depend on the execution of definitive agreements where required.
PACRA noted that any material developments resulting from the cooperation will be disclosed in accordance with applicable requirements. The agreement was communicated through a notification to the Pakistan Stock Exchange.
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