In an attempt to return to international capital market, Pakistan has inked financial services agreement for the sale of off shore exchangeable bonds of OGDCL to reduce the high ceiling financial tragedy and raising more than $500m.
The Privatisation Commission (PC) has entered into an agreement here on Monday with the consortium of Citibank, Credit Suisse, JP Morgan and BMA Capital, for the appointment of Financial Advisory Consortia for the issuance of Oil & Gas Development Company Limited (OGDCL) exchangeable bonds by monetizing up to 10 percent of Government of Pakistan (GoP) shareholding (up to 430,000,000 shares) in OGDCL (Transactions).
It is not out of place to mention that in response to PC’s invitation, four consortiums comprising leading financial institutions and investment banks have already filed their Expression of Interests (EoIs) for acting as financial advisors for issuance of Oil & Gas Development Company Limited (OGDCL)’s exchangeable bonds by monetising up to 10 percent shareholding.
The Secretary Privatization Commission, Imtiaz Kazi and Syed Sikander Zulqarnain, representative of the consortium of Citibank, Credit Suisse, JP Morgan and BMA Capital, signed the Financial Advisory Services Agreement for OGDCL Exchangeable Bond on behalf of their respective sides. Citbank’s Chief Country Officer, Arif Usmani and Laeeq Sheikh, PC Board member, were also present as witness to the contract signing. Moreover, the representatives of State Bank of Pakistan, Ministry of Finance and OGDCL were also present in the meeting.
When contacted experts, they said, OGDCL is the national oil and gas company of Pakistan and the local market leader in terms of reserves, production and exploration acreage. It is listed on all three stock exchanges in Pakistan and was floated on the London Stock Exchange in December 2006.