What is "PARI PASSU" Clause ?

The pari passu clause is a standard clause in public or private international unsecured debt obligations (syndicated loan agreements and bond issuances). To understand the pari passu clause, it is first necessary to understand the meaning of the short Latin phrase “pari passu”. Literally, this means “with equal step”, from pari, ablative of par, “equal” and passu, ablative of passus, “step”. That is to say, pari passu refers to things that are in same situation, things that rank equally. This notwithstanding, the pari passu clause, as brilliantly noted by Buchheit (2000), “is short, obscure and sports a bit of Latin; all characteristics that lawyers find endearing”.

A Latin phrase meaning "equal footing" that describes situations where two or more assets, securities, creditors or obligations are equally managed without any display of preference. An example of pari-passu occurs during bankruptcy proceedings when a verdict is reached, all creditors can be regarded equally, and will be repaid at the same time and at the same fractional amount as all other creditors. Treating all parties the same means they are pari-passu

I fully agree with MR Jawad Qureshi

equal charge on assets by all creditors unlike ranking charge.

Equal in all respects, at the same pace or rate, in the same degree or proportion, or enjoying the same rights without bias or preference. If a new issue of shares (stock) is said to rank pari passu with the existing shares, then the rights associated with both issues are exactly the same. Latin for, with equal steps.

This term means: 

Requirement of equal rights for shareholders or lenders