Business

Bond float: Roadshows planned in key financial cities

Privatisation Commission announced that it will undertake roadshows in five countries to raise $500 million in bonds.

Express June 06, 2011

ISLAMABAD:

The Privatisation Commission has announced that it will undertake roadshows for the issuance of $500 million worth of bonds, at Abu Dhabi, Singapore, Zurich, London and Hong Kong from June 19 to 21.

The financial advisory consortium comprising Citibank, Credit Suisse, JP Morgan and BMA Capital, has been assigned the task to issue the exchangeable bonds backed by 10 per cent shares of Oil and Gas Development Company Limited (OGDCL).

Published in The Express Tribune, June 7^th, 2011.

COMMENTS (6)

Hedgefunder | 13 years ago | Reply Well i can assure you they have not been accepted very warmly in London !!! Been to the event and its not really making sense as there are other factors as to life span of Pakistan in its present form !! This being questioned by the smart money already in London , so please drop the illusions and get real!!

Kaylea | 13 years ago | Reply Wakling in the presence of giants here. Cool thinking all around!

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Hedgefunder | 13 years ago | Reply This is really bad news in long term interests of the Nation !! Selling state assets to fund immediate requirements is not the solution!!! I bet these funds will barely have any impact in the bigger picture of Pak Economy, and furthermore its most likely that these funds have already been earmarked as to its useage too!!!!!

Meekal Ahmed | 13 years ago | Reply IMF is not forcing the government to do anything although this could well have been factored into the financing assumptions of the program. But the program is dead in the water. I think the strength of the external side should help bring the CDC down. After all, we could end up with a balance of payments surplus for the whole year. This is quite unprecedented. Question is what will they do with the money? Ideally they should retire debt and create fiscal space. It should NOT be used for budgetary support/financing.

moise | 13 years ago | Reply Toxic debt comes to Pakistan. More debt, more subservience to bankers. Good job financial manager of our country.

Zazi | 13 years ago | Reply These are collateralized bonds tied to OGDCL loan to value in shares. GOP's 10% stock holding is equivalent to 430 million shares to backstop the bond issue. No one wants to take clean GOP risk given the state of the economy and rising budget deficit against GDP. Pakistan is in the doghouse. The markets in London right now are closed otherwise I could have quoted Credit Default Swap (CDS), which last month after OBL's raid was around 775 - 800 basis points. It will probably be now close to Greece. Very expensive to raise this $500 million bond issue plus arrangers, JPMorgan and Citibank etc., will make huge fees based on Pakistan's risk appetite. IMF is forcing this issue to make Pakistan go to the debt markets before they discuss release of the next tranche. Bad shape.

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