PC PLANNING US $ 500 MILLION THROUGH CONVERTIBLE BONDS OF OGDCL’s 5 % SHARES-Senator Waqar Ahmed Khan

Islamabad, March 18, 2010

 
The Privatisation Commission (PC) is planning to get US $ 500 million through convertible bonds of Oil & Gas Development Company Limited (OGDCL). Senator Waqar Ahmed Khan Federal Minister for Privatisation said while briefing the media persons regarding the proceedings of the first meeting of the reconstituted 15 members Privatisation Commission’s Board meeting here today.

He further stated that various proposals of exchangeable and convertible bonds were being analyzed with lowest coupon rate and maximum premium to remove burden on national exchequer. The government was targeting around US $ 500 million within the shortest span of time of four weeks, he added.

The Minister said that formal Requests for Proposal were being sent to 10 holistic and World’s reputable financial institutions including Citibank, J P Morgan, Nomura Investment Inc; UK, Barclays Bank, Morgan Stanley, Goldman Sachs, Credit Suisse, Merrill lynch and others.

Senator Waqar Ahmed Khan Federal Minister for Privatisation stated that untiring efforts would be made to explore all avenues for value addition of our national assets. After completing the due diligence Ministries of Petroleum & Natural Resources and Finance would also be taken on board to proceed further.

The Minister indicated that Faisalabad Electric Supply Company (FESCO), Convertible or Exchangeable bonds of OGDCL and Jamshoro Power Company (JPC) were on the active list among other entities.

He said that invitation was being extended to assess the market appetite prior to extending formal Expression of Interest (EOI) for Faisalabad Electric Supply Company (FESCO). Entities approved by Council of Common Interest (CCI) and Cabinet Committee on Privatisation were being taken forward after necessary restructuring through Public Private Partnership (PPP) for the value addition of our assets and for the benefit of the country, he added.

Referring to the details of the Pakistan Telecommunication Company Limited (PTCL)’s outstanding issues, Senator Waqar Ahmed Khan said a meeting of the inter-ministerial Committee constituted by the Prime Minister including him, Syed Naveed Qamar Federal Minister for Petroleum & Natural Resources and Mr. Qamar Zaman Kiara Federal Minister for Information & Broadcasting met yesterday decided to make concentrated efforts for early receipt of the due installments amount of US $ 800 million to facilitate PTCL in accordance with the SPA signed for the transfer of remaining properties, which also included private and some of them with the provinces.

The meeting of the recently reconstituted and expanded 15 members Board of Privatisation Commission held under the chairmanship of Senator Waqar Ahmed Khan Federal Minister for Privatisation. Besides the introduction of new members of the PC Board, the meeting reviewed the implementation status of the decisions taken during the last meeting. The new members were briefed about the activities and the functioning of the Privatisation Commission.

Mr. Shahab Khawaja Federal Secretary Privatisation, PC Board members, senior officials of the respective Ministries /departments and PC officials and Consultants were present during the meeting.