Pakistan Panda Bond Scaling Strategy Proposal | Vastgold Enterprise Holding Ltd.

Executive Summary

On May 14, 2026, Pakistan successfully issued South Asia's first sovereign Panda Bond — "26 Pakistan Bond 01BC (Sustainable)", with a size of RMB 1.75 billion, a coupon rate of 2.5% (the lowest ever for Pakistani sovereign bonds), and an oversubscription ratio exceeding 5x. The lead underwriters were CICC, BOC, Standard Chartered, and Hongta Securities; HBL served as financial advisor to the issuer. CCXI assigned an AA+ issuer rating and AAA bond rating, with ADB and AIIB jointly providing 95% principal and interest guarantee.

This proposal conducts a comprehensive review of the first issuance process, identifies five structural limitations of the current model, proposes a "three-phase" scaling strategy, and systematically elaborates on the core participation modes and value creation mechanisms for fund companies at each stage.

¥1.75B

Issue Size

2.5%

Coupon Rate

>5×

Subscription Ratio

¥8.8B

Investor Demand

¥7.2B

Total Program

AAA

Bond Rating

1 First Issuance Review and Assessment

1.1 Core Issuance Parameters

Parameter	Value	Remarks
Bond Name	26 Pakistan Bond 01BC (Sustainable)	Pakistan Panda Bond 01BC (Sustainable)
Issue Size	RMB 1.75 Billion (≈USD 250M)	First Tranche
Tenor / Rate	3-Year Fixed Rate / 2.5%	Lowest rate in Pakistani sovereign bond history
Oversubscription	> 5×	Effective bids approx. RMB 8.8 billion
Total Program	RMB 7.2 Billion (≈USD 1 Billion)	NAFMII registered ceiling
Lead Underwriters	CICCBOCStandard CharteredHongta Securities
Financial Advisor	HBL	Largest private commercial bank in Pakistan
Issuer / Bond Rating	AA+ (Domestic Scale) / AAA	Assessed by CCXI
Guarantee Structure	ADB + AIIB Jointly Provide 95% Partial Guarantee — First in domestic market
Use of Proceeds	Sustainable development projects: water infrastructure, clean energy, healthcare
Listed / Trading	Interbank market (NAFMII) + Bond Connect

1.2 Key Success Factors

Significant financing cost advantage: The 2.5% RMB financing cost saves approximately 450–550 basis points compared to contemporaneous USD bond rates of 7-8%, reducing annual interest expenditure by over USD 10 million
Innovative credit enhancement mechanism: Multilateral Development Banks (MDBs) and domestic credit rating agencies collaboratively built a "dual-track credit enhancement" framework; the 95% partial guarantee arrangement is unprecedented in the domestic market with strong demonstration effects
Comprehensive underwriting team configuration: CICC's project coordination and bookbuilding capabilities, BOC's cross-border custody and settlement network, Standard Chartered's offshore investor coverage, and Hongta Securities' regional distribution network formed complementary synergies
Precise timing of issuance window: The issuance was timed around the Belt and Road Forum for International Cooperation, achieving high alignment between market sentiment and policy direction

⚠ Structural Limitations of Current Model:

Scale bottleneck: The RMB 7.2 billion (approx. USD 1 billion) total registered program is severely inadequate relative to Pakistan's average external financing needs of over USD 3 billion annually
Guarantee sustainability risk: The 95% multilateral guarantee coverage is constrained by ADB/AIIB country exposure ceilings and cannot be infinitely replicated
Lack of institutionalized vehicle: The current model relies primarily on direct government issuance (Presidential representative authorization), without establishing a dedicated SPV or sovereign wealth fund as a recurring bond issuance platform
Absence of secondary market ecosystem: Current trading consists mainly of primary market buy-and-hold positions, lacking market-making mechanisms and derivative instruments, resulting in weak liquidity
Issuer-bond rating gap: The gap between the AA+ issuer rating and AAA bond rating relies entirely on external guarantees to bridge, indicating insufficient intrinsic credit strength

2 Underwriter Full Process Analysis

The following systematically reviews this issuance's underwriting work, outlining the division of responsibilities among participating parties, key decision points, and operational logic.

2.1 Preparatory Phase and Role Division Matrix

Lead Underwriter — CICC

Overall project coordination and schedule management
Preparation and filing of NAFMII registration materials
Ongoing communication and coordination with regulators throughout the process
Issuance timeline development and milestone control
Lead bookbuilding and final pricing
Post-issuance information disclosure supervision

Joint Lead Underwriters — BOC / Standard Chartered

Cross-border RMB business architecture design
Offshore issuer requirements liaison and communication
Fund repatriation pathway design and compliance review
Bond custody and agency settlement services (BOC)
QFII/RQFII investor channel introduction (Standard Chartered)
Secondary market liquidity support and market-making commitments

Distribution Network — Hongta Securities and Other Distributors

Responsible for coverage and marketing to domestic , including city commercial banks, rural commercial banks, public/private fund accounts, insurance asset management products, etc. This tier represents the key interface point for fund company distribution collaboration.

2.2 Regulatory Filing and Structural Design Process

Stage	Key Action	Owner
Rule Applicability Confirmation	Interbank Panda Bond NAFMII rule applicability analysis	CICC-led legal team
Credit Rating Acquisition	Coordinating CCXI to complete issuer and bond ratings	CICC + HBL due diligence support
Legal Documentation	Prospectus (Chinese/English bilingual), Pakistan law legal opinion, PRC law opinion	Chinese and international legal teams collaboration
Registration Application	Submission of registration ceiling application to PBoC/NAFMII	CICC + BOC coordination
Guarantee Agreement Execution	ADB and AIIB partial guarantee agreement negotiation, approval, and execution	Pakistani Ministry of Finance + MDB legal teams
Use-of-Proceeds Certification	Third-party certification of sustainable project list	Independent certification agency
Issuance Filing	Finalization and disclosure of offering circular, subscription invitation, etc.	CICC-led

2.3 Bookbuilding and Pricing Strategy

Investor Tiering and Channel Strategy:

Investor Type	Channel	Underwriting Lead
Large State-Owned Banks / Wealth Management Subsidiaries	Targeted roadshow emphasizing "Belt & Road" national strategic attributes and sovereign credit backdrop	CICC + BOC primary focus
QFII / RQFII Offshore Institutions	Introduced via Northbound Bond Connect channel	Standard Chartered overseas network
City Commercial Banks / Rural Commercial Banks	Regional distribution network deep coverage	Hongta Securities
Mutual Funds / Private Accounts / Insurance AM	Fixed-income product allocation, inclusion in "Belt & Road" themed investment portfolios	★ Fund Company Core Entry Point ★
Social Security Fund / Pension Funds	Long-term capital matching and asset allocation	CICC + BOC joint recommendation

Pricing Logic Breakdown: The final coupon rate of 2.5% for this tranche was determined through comprehensive balancing of the following factors:

Benchmark anchor: ChinaBond government bond yield curve (approximately 1.6%-1.8%)
CDB spread reference: Same-tenor CDB bond yields (approximately 1.9%-2.1%)
Country risk premium: Residual sovereign risk premium after ADB/AIIB guarantee offset (approximately 40-60bp)
Liquidity premium: Panda bond secondary market liquidity discount relative to government/policy bank bonds (approximately 20-30bp)
Green/Sustainability premium discount: ESG investor demand premium from sustainable use-of-proceeds (approximately -10~-20bp)

2.4 Post-Issuance Management Responsibilities

CICC: Ongoing information disclosure supervision, interest payment/redemption schedule management, periodic tracking report review
BOC (Custodian Bank): Cross-border RMB fund transfers, interest payments to designated Pakistani accounts, FX position management
Standard Chartered: Two-way quote market-making support, liquidity intervention commitment during abnormal volatility
CCXI: Rating surveillance service, periodic publication of rating watch reports
HBL (Financial Advisor): Local compliance liaison on the Pakistani side, policy change early warning

3 Three-Phase Scaling Strategy

Building on the first issuance success and systematic analysis of the above structural limitations, it is recommended that the Government of Pakistan adopt a progressive scaling strategy, achieving transformation from a "one-off guarantee-dependent debt transaction" to an "independent, sustainable national rolling bond issuance platform" across three phases.

Phase I · T+0 to T+6 Months

Rapid Replication — Scaling Up Within Existing Framework

Core Objective: Fully leverage the established RMB 7.2 billion registered program framework and intermediary chain to rapidly advance second and third tranche issuances.

Execution Priorities:

Completely reuse the existing intermediary team and legal framework comprising CICC + BOC + CCXI + ADB/AIIB to minimize preparation lead time
Recommended second tranche size of RMB 2.0-2.5 billion, with potential expansion of use-of-proceeds to China-Pakistan Economic Corridor (CPEC) Phase II priority infrastructure projects
Leverage the strong market momentum from the first tranche oversubscription (RMB 8.8B demand vs RMB 1.75B supply) to push the coupon rate further down to 2.2%-2.3%
Vastgold's available support: Prospectus update acceleration, new investor distribution coordination, roadshow material optimization, issuance window timing advice

Phase II · T+6 to T+18 Months

Structural Upgrade — Reducing Guarantee Dependency, Establishing Institutionalized Issuance Vehicle

(A) Establishment of Dedicated Sovereign Wealth Fund SPV

Register a dedicated sovereign wealth fund (SPV) within Pakistan, with 100% equity held by the Ministry of Finance
Serve as the institutionalized statutory vehicle for all subsequent Panda Bond issuances, replacing the current ad hoc "Presidential Representative" arrangement
The SPV must establish governance structures meeting international standards: Board of Directors, Audit Committee, Investment Committee, compliance functions
Vastgold can deploy CEO and CFO holding internationally recognized qualifications (ACCA/CPA/CFA) to ensure fund operations meet transparency and disclosure requirements for cross-border investors

(B) Gradual Guarantee Reduction Pathway

Phase	Guarantee Ratio	Expected Bond Rating	Prerequisite
Current State	95%	AAA	ADB + AIIB joint guarantee
Step 1	Reduce to ≈80%	Maintain AAA	Continuous improvement in economic indicators (GDP growth, CPI decline, fiscal deficit narrowing)
Step 2	Reduce to 60%-70%	AA+ ~ AA	CCXI issuer rating upgraded to A-/A scale
Target State	0% (Full Exit)	AA+	Full Pakistani sovereign guarantee + strategic resource (copper/rare earth) collateral pool substitution

(C) Establishment of Rolling Issuance Mechanism

Initiate preparation for refinancing new bonds 3-6 months before each tranche maturity, using proceeds from new issuances to prioritize repayment of upcoming maturing outstanding debt
Achieve conversion from short-term tenor bonds to medium-long-term available funds, reducing refinancing risk
Reference the Hungarian model (cumulative Panda Bond issuance exceeding RMB 10 billion between 2017-2024) to construct a rolling issuance schedule template

Phase III · T+18 Months and Beyond

Platform Operations — Building a Full-Function National Panda Bond Issuance Platform

Scale Target: Achieve normalized annual issuance volume of RMB 5.0-10.0 billion (approx. USD 700M-1.4B), making Panda Bonds a pillar channel within Pakistan's foreign-currency financing system.

Diversified Product Line:

Green Panda Bond — Focusing on renewable energy and environmental governance projects, attracting ESG-themed fund allocations
CPEC Special Bond — Proceeds designated for corridor priority projects, reinforcing "Belt & Road" narrative
Resource-Backed Bond — Supported by underlying assets of Pakistani mineral resources (copper, gold, rare earths)
Sukuk-Linked Sustainable Bond — Innovative instrument compliant with Islamic finance principles (Sharia-compliant)

Resource Bank Extension Strategy: Promote establishment of a natural resource asset trading platform, using future revenue rights or extraction rights of Pakistan's strategic mineral resources as credit-enhancement collateral, fundamentally resolving insufficient sovereign guarantee capacity issues.

Derivative Revenue Layer Design: Using outstanding Panda Bond portfolio as underlying collateral, issue linked derivatives through licensed securities firms on HKEX (such as bond ETFs, interest rate swap structured products), achieving complete isolation of service revenue from bond issuance proceeds — issuance principal remains 100% at the disposal of the Pakistani side, while service provider revenue derives from independent capital market operations. This structure has no precedent in the global sovereign Panda Bond market.

4 Fund Company Participation Pathways: Three Progressive Modes

As a fund company without a securities brokerage license, one cannot assume the role of lead underwriter. However, deep participation in the Pakistan Panda Bond business chain is possible through the following three progressive pathways, creating differentiated value at each stage.

Mode 1: Institutional Investor — Most Direct Participation, Immediately Actionable

Standard Operating Procedure

Verify/open interbank bond market trading account qualification
Continuously monitor NAFMII announcements or Subscription Invitations issued by lead underwriters
Submit bid orders on bookbuilding day (price level and subscription quantity)
Make payment upon allocation confirmation; based on investment strategy, choose hold-to-maturity or sell opportunistically in secondary market

Vastgold's Competitive Advantages as a Fund

Can leverage early communication to secure "Cornerstone Investor" status, obtaining priority allocation quotas and price information
Access more detailed issuer due diligence materials and roadshow schedules through internal networks
Can include Panda Bonds simultaneously across multiple product lines: pure bond funds, credit strategies, "Belt & Road" themed funds, ESG fixed-income products
The 2.5% coupon level offers strong appeal for fixed-income products seeking stable cash flow in the current low-rate environment

Mode 2: Distributor / Financial Advisor — Medium-Barrier Value-Add Role

Core Business Model: Without assuming lead underwriting responsibility, sign a Non-Lead Underwriter Distribution Agreement with the lead underwriting team, assist in distributing a certain bond quota, and earn distribution commissions (typically 0.1%-0.3% of distributed amount).

Proactively engage with the lead underwriter's Debt Capital Markets (DCM) department, expressing the scale and type of potentially addressable investor base
Mobilize managed client resource networks for outreach: high-net-worth individual accounts, bank outsourced mandates, corporate annuity/pension sub-accounts, insurance FOF products
Coordinate with lead underwriter roadshow schedules to conduct one-on-one roadshows or online briefings for regional prospective investors
Revenue composition: Front-end distribution commission + back-end potential client asset management fee sharing
Under this mode, a mutually beneficial cooperative relationship forms between the fund company and lead underwriter — the underwriter expands its investor base, while the fund company earns intermediary business revenue and enhances client stickiness

Mode 3: Product Creator — High-Level Active Management Mode

Innovation Direction: Initiate and manage thematic fund products specifically investing in Pakistan Panda Bonds and related instruments.

Raise RMB capital from qualified investors to establish a "Belt & Road Bond Investment Fund" or "Emerging Market Sovereign Bond Select Strategy"
Investable targets include: Pakistan Panda Bond outstanding and incremental issuances, other onshore RMB bonds from Belt & Road countries, related FX/interest rate hedging instruments
Advance communication with issuer (or its SPV vehicle) on quota lock-in arrangements; sign Private Placement Agreements with lead underwriters to ensure initial position-building scale
Upgrade from passive subscriber to active manager; revenue sources expand to: management fee (0.5%-1.5% of AUM) + performance fee (10%-20% of returns exceeding benchmark)
Product design can differentiate along multiple dimensions: tenor matching (short/medium/long), risk appetite (conservative/balanced/aggressive), thematic focus (green/CPEC/resources), compliance framework (conventional/Islamic)

Three Modes Comparison Overview:

Dimension	Mode 1 Investor	Mode 2 Distributor	Mode 3 Product Creator
Entry Barrier	Low (account qualification only)	Medium (distribution agreement + client resources required)	High (product design + filing + fundraising)
Revenue Source	Coupon interest + capital gains	Distribution commission	Management fee + performance fee
Risk Exposure	Credit risk + interest rate risk	Minimal (no holdings)	Operational risk + reputational risk
Market Influence	Limited	Medium	High (can define niche segment)
Recommended Start Timing	Immediately	Before second tranche issuance	After SPV established

5 Vastgold's Core Value Positioning

5.1 Verified Belt & Road Sovereign Financing Methodology

Vastgold Enterprise Holding Ltd. is currently executing sovereign Panda Bond structural design tasks for other partner countries along the Belt & Road (specific country information subject to confidentiality agreements). These practices have crystallized into a complete, verified methodology system:

Sovereign Fund Architecture Design

SPV establishment plan, governance structure buildout, IFRS/GAAP accounting standards adaptation

Underwriting Syndicate Assembly & Negotiation

Lead underwriter selection criteria, joint arranger arrangements, fee structures and incentive mechanisms

Rating Dialogue & Management

Rating communication frameworks with CCXi/Moody's/S&P, upgrade pathway planning

Rolling Issuance Mechanism

Rolling issuance schedule templates, refinancing risk management, liquidity buffer design

5.2 Revenue Isolation Design — Core Differentiating Competitiveness

Fundamental Principle: 100% of funds raised through issuance belong to the Government of Pakistan and their designated uses. Vastgold does not extract any form of fees, commissions, or revenue-sharing from issuance principal or interest payments.

Vastgold's service compensation derives from independent derivative market operations fully isolated from bond proceeds: using listed Panda Bond portfolios as underlying assets, generating management income and trading revenue from structured products issued via the Hong Kong capital markets.

This "revenue isolation" structure is pioneering in the global sovereign Panda Bond issuance market and represents the fundamental differentiator between Vastgold and traditional investment bank/securities firm underwriting models.

5.3 Private Placement Capability — Precision Matching and Efficiency Advantage

Core Advantage: Vastgold possesses Private Placement execution capability, enabling non-public targeted issuance within the interbank bond market framework toward specific qualified investor groups. Compared to traditional public underwriting modes, this capability delivers the following structural advantages:

Dimension	Public Offering	Private Placement
Issuance Cycle	4-8 weeks (including full roadshow, bookbuilding, and pricing process)	2-3 weeks (streamlined disclosure, rapid settlement)
Investor Precision	Broad but dispersed, significant retail/SME institution participation	Highly focused (pre-locked qualified institutional investors, high funding certainty)
Disclosure Requirements	Full prospectus + ongoing periodic reporting	Simplified disclosure (limited placement memorandum only to subscribers, stronger sensitive information protection)
Issuance Cost	Underwriting fee 0.3%-0.8% + legal/rating/audit fees	All-in cost reduced by 30%-50% (eliminating portions of roadshow and marketing expenses)
Pricing Flexibility	Bookbuilding open auction, transparent pricing but limited negotiation room	Negotiated pricing (one-on-one negotiations, can embed structured terms)
Regulatory Approval	Full NAFMII registration/filing procedure required	Filing-based fast track (utilizing existing registered program for phased private placements)

Specific Application Scenarios for Private Placement in Pakistan Panda Bond Scaling:

Second/Third Tranche Rapid Refinancing: Building on the first tranche's oversubscription (>5×), conduct private placements with institutional investors who were undersubscribed in the first round or expressed follow-on intent, achieving rapid settlement within T+2 weeks using established investor relationships without re-initiating the full roadshow process
Sovereign Wealth Fund SPV Seed Capital Raising: When establishing the dedicated SPV in Phase II, introduce 2-3 cornerstone strategic investors (e.g., Belt & Road special funds, Middle Eastern sovereign wealth fund RMB asset allocation departments) through private placement, exchanging negotiated pricing + long-term holding commitments for more favorable issuance terms
Resource-Backed Innovative Product Debut: Innovative products such as Resource-Backed Panda Bonds launched in Phase III, whose underlying asset structures and credit enhancement mechanisms are relatively complex, are suitable for initial pilot issuance through private placement to professional institutional investors (e.g., commodity hedge funds, resource-focused industrial funds) before considering broader rollout after validating market acceptance
Sharia-Compliant Investor Segment (Sukuk-Linked): Conduct targeted outreach to Sharia-compliant investor communities in the Middle East and Southeast Asian Islamic finance markets, which have unique investment eligibility criteria and compliance review requirements; private placement can provide customized legal documents and communication approaches

In summary, private placement capability enables Vastgold to provide the Government of Pakistan with an efficient, flexible, low-cost parallel financing channel outside the traditional lead underwriter system — delivering irreplaceable value particularly in scenarios requiring rapid response to window opportunities, protecting sensitive information, or engaging specialized investor segments.

5.4 Synergistic Relationship with Existing Intermediary System

Vastgold's positioning does not seek to replace any existing intermediary participants, but rather provides additive value atop the existing underwriting chain:

Counterparty	Collaboration Area	Vastgold Value-Add
CCXI	Issuer rating upgrade pathway design	Detailed reform benchmark checklist and timeline driving AA+ → A-/A scale transition
BOC	Investor network expansion	Introducing additional non-bank institutions and offshore investors beyond its underwriting network
CICC / HBL	Execution-level efficiency improvement	Document preparation acceleration, cross-timezone regulatory coordination, roadshow schedule optimization
ADB / AIIB	Guarantee ratio reduction transition bridging	Designing and implementing alternative credit enhancement schemes (sovereign guarantee + resource collateral pool)
Hongta Securities	Regional distribution deepening	Sharing Southwest/Northwest region institutional investor coverage networks

6 Rating Upgrade Trajectory and De-guarantee Roadmap

6.1 CCXI Rating Dynamic Evolution

Timepoint	Rating	Key Driver(s)
March 2025	CCCg	Weak economic fundamentals, narrow tax base, foreign reserves at dangerous levels, elevated default risk
August 2025	B⁻g	GDP growth recovered to 2.4%, inflation dropped sharply from 29.4% to 12.6%, new IMF USD 7 billion loan arrangement concluded
May 2026	AA+ (Domestic Scale)	Successful Panda Bond debut activated domestic-scale rating channel; ADB/AIIB 95% partial guarantee secured
Outlook	→ A⁻ / A	Prerequisites: continued structural economic reforms, substantive fiscal consolidation progress, significant reduction in political uncertainty

Rating upgrade triggers explicitly listed in the CCXI report:

✅ Significant alleviation of government FX liquidity risk ← The Panda Bond issuance itself constitutes a meaningful liquidity improvement signal
⏳ Domestic political landscape trending toward stability, enhanced policy continuity
⏳ Substantive implementation of structural fiscal reforms (tax base widening, energy subsidy cuts, SOE restructuring)
⏳ Sustained recovery of foreign exchange reserves maintained above safe thresholds

Positive Feedback Loop Effect: Successful Panda Bond issuance → Improved liquidity conditions → Gradual satisfaction of rating upgrade triggers → Progressive reduction in multilateral guarantee dependency → Further reduction in all-in financing costs → Attraction of broader investor base → Simultaneous enhancement of issuance platform scale and sustainability

6.2 "De-guarantee" Roadmap Forecast

T+0 Current State

Issuer AA+ | Bond AAA | Guarantee 95% (ADB+AIIB) | Rate 2.5%

T+6~12 Months

Second/third tranche launched | Guarantee ratio lowered to ~80% | Bond rating maintained at AAA | Coupon rate potentially compressed to 2.2-2.3%

T+12~24 Months

Sovereign wealth fund SPV officially operational | Guarantee ratio reduced to 60-70% | Issuer rating enters A- scale | Rolling issuance mechanism initiates first cycle

T+24~36 Months

Resource-backed credit enhancement mechanism operational | Multilateral institution guarantees fully exited | Normalized annual issuance reaches RMB 5.0-10.0B | Derivative revenue layer begins generating output

7 Action Recommendations and Implementation Roadmap

7.1 Four-Step Advancement Roadmap

1 High-Level Strategic Dialogue

Arrange the inaugural formal meeting between the Pakistani Ministry of Finance/Central Bank (SBP) core decision-makers and Vastgold executive management team

2 Non-Disclosure Agreement (NDA) Execution

Following NDA effectiveness, Vastgold submits technical detail design documents for the three-phase strategy (including draft SPV articles of association, rating upgrade roadmap, de-guarantee timetable)

3 Memorandum of Understanding (MOU)

Clarify mutual rights and responsibilities, work division, key milestone nodes, fee and revenue arrangements (including revenue isolation clause), dispute resolution mechanism

4 Substantive Work Parallel Launch

Sovereign wealth fund SPV detailed architectural design, second tranche issuance technical preparation, guarantee reduction transition plan — three workstreams advancing concurrently

7.2 Action Checklist from Fund Company Perspective

#	Action Item	Priority	Timeline
F1	Establish direct contact with new lead underwriter Fixed Income Department / Debt Capital Markets (DCM) and formally express allocation intent for Pakistan Panda Bonds	High	Immediate
F2	Internally complete Pakistan sovereign credit risk assessment report (covering foreign reserve trends, IMF program progress, sovereign rating outlook, geopolitical risk factors)	High	Within 2 Weeks
F3	Determine preferred participation path (pure investment / distribution collaboration / thematic fund creation) and prepare corresponding qualification documents and cooperation agreement templates	Medium	Within 1 Month
F4	If product creation route selected: initiate fund contract/partnership agreement drafting, prepare filing materials for CSRC or Asset Management Association of China	Medium	2-3 Months
F5	Establish routine monitoring mechanism: regularly track NAFMII announcements, new issuance information and secondary market transaction data in Wind/Bloomberg/QB systems	Ongoing	Daily/Weekly

Core Thesis:

The successful issuance of Pakistan's first Panda Bond has fully validated market recognition of Pakistan's sovereign credit and Chinese investor demand for assets from "Belt & Road" countries.

The strategic focus at this stage should no longer be discussing "Can we issue?", but rather systematically answering "How to issue at larger scale, lower cost, and higher sustainability?"

This is precisely where Vastgold's core value as a strategic advisor with a fund company background lies — we not only understand the issuer's financing needs, but also deeply grasp the intersection of market demand and product design from an institutional investor perspective, capable of building an efficient value bridge across both dimensions.

Registered in: Hong Kong SAR, China

May 2026

Data sources for this proposal: Public market offering documents; NAFMII registration announcements; CCXI rating reports; World Bank/IMF public databases

Disclaimer: This document is intended solely for the recipient's internal strategic deliberation and decision reference purposes. It does not constitute any form of investment advice, offer, or invitation to offer. Financial investment involves risks; any investment decisions should be based on independent professional due diligence. Statements and forecasts contained herein regarding future rating changes, interest rate trends, issuance scales, and timetables represent reasonable inferences based on currently available information, with no assurance that actual results will conform thereto. Detailed information pertaining to specific countries has not been fully disclosed due to confidentiality agreement constraints.