Nomura Bank offers convertible bonds for OGDCL: Senator Waqar
 

Lahore, March 5 (APP)- Federal Minister for Investment, Senator Waqar Ahmed Khan has said that Nomura Bank offered convertible bond at about 7.75 percent for Oil and Gas Development Corporation Limited (OGDCL).Briefing media after having a meeting with PEPCO officers at Wapda House here Friday, he said that bond is 5 to 6 percent less than Pakistan’s sovereign bond. “I think that is an achievement; we are working on,” he added.

The Minister said that Pakistan has also sought request for quotations (RFQs) from other financial institutions as well and if they do the same, ‘we will materialize it within four to five weeks and this convertible bond will be of worth 400 to 500 dollars.’

He said, “we have hired the Nomura Bank as an internal advisor,” adding, discussion are under way with other international banks including the City Bank that today, how Pakistan can plan its strategic investment. “Pakistan is trying hard to match its priorities with global investors’ policies, that is why we are actually revamping the whole process by creating data rooms and IMs,” he maintained.

The Minister said there is approval of Council of the Common Interest for privatisation of about 58 state-owned enterprises for which private sector’s involvement is vital. “Basically, we want to take this approach for privatization on fast track,” he observed.

Giving an overview of the privatization process, the minister said extensive meetings were being held with financial institutions for the last one-and-half months,. Foreign and strategic investors are eagre to invest in Pakistan due to its investment friendly policies , opportunities and political stability, he added.

Two weeks ago, he said, a cabinet meeting discussed restructuring of the institutions including PIA, Pakistan Railways, Pakistan Steel Mills and PEPCO, and suggested for transparent formation of boards to restructure the loss incurring institutions. He said experienced, efficient and competent Chief Financial Officers (CFOs) and Chief Operating Officers (COOs) should be appointed on merit.

“The CFOs and COOs shouldn’t be political appointees and they should be based on merit to run the boards in a transparent manner,” he added.

He said Pakistan was bearing around $ 3 billion loss annually. “If these institutions are converted into profitable entities , they can contribute to the national exchequer,” he added.

The meeting with officers of Pakistan Electric Power Company (PEPCO) was aimed at reviewing its performance, operation, line losses and management issues. “Because, we are actively looking at FESCO, PESCO and HESCO, as IFCs and other institutions are extremely interested and we have information to exchange memorandum on this,” he asserted.

The minister said since the strategic investor was well aware, “ we have to create value addition in our institutions by setting up certain criteria and mile stone.”

He said effective measures would be put in place to bridge the PEPCO’s line losses, besides focusing on enhancing power generation.

Senator Waqar Ahmed Khan said that in an earlier meeting with Wapda Chairman and World Bank’s representatives, discussions were held on how underwriting areas could be developed as well as infra-structural development and building of market confidence.

“We have also discussed with them the provision of funds for infra-structure development,”he said, asserting that WB representatives assured to contribute 30 percent and suggested that the same percentage should be raised through local equity and 40 percent should be raised through multi-lateral or financial institutions.

The PEPCO Managing Director Tahir Basharat Cheema and other officers concerned were also present.