Pakistan, May 16 -- The Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) have collaborated to support Pakistan's first issuance of a Panda bond to finance its Sustainable and Green Infrastructure Project, the ADB said on Friday.

Panda Bonds are yuan-denominated bonds issued by foreign governments or institutions. The launch of 1.75 billion yuan (approximately $258 million) sustainable development bond on Thursday marked Pakistan's first entry into China's domestic bond market, which is one of the world's largest capital markets.

The bond marks a milestone in using guarantees to enable a developing member country to access the capital market in China. As the first bond with less than 100 percent guarantee ...