OGDC exchangeable bonds: PC receives EoIs from four bank consortiums

In response to the Privatisation Commission's (PC) invitation to Financial Advisory Consortia for the issuance of OGDC Exchangeable Bonds for Expression of Interest (EOI) for issuance of OGDC Exchangeable Bonds by monetising up to 10 percent of Government of Pakistan (GoP) shareholding (up to 430,000,000 shares) in OGDC (Transactions).
The PC has received EOIs along with non-refundable processing fee of $10,000 each from four consortia, which include: 1. Bank of America/Merrill Lynch, Barclays Bank, SCB, and KASB, 2. HSBC, BNP Paribas, UBS, NIB, and NBP, 3. Citibank, J.P. Morgan, Credit Suisse, and BMA 4. Nomura, Deutsche Bank, and Silk Bank. The consortia that have submitted their EOIs are being issued Request for Proposal (RFP) package for inviting Technical and Financial proposals. The last date for the submission of the Technical & Financial proposals will be informed later.
OGDC is the largest petroleum exploration, production and development company in Pakistan, listed on all three Stock Exchanges in Pakistan as well as on London Stock Exchange. In 2003, Government of Pakistan ("GoP") divested 4.98 percent of OGDC shares via an Initial Public Offering (IPO) followed by Secondary Offering (SO) of 9.5 percent shares in the form of Global Depository Receipts ("GDRs") at London Stock Exchange and simultaneous Secondary Public Offering (SPO) of 0.5 percent to the general public in 2006.
GoP further divested its OGDC shares via the Benazir Employee Stock Option Scheme (Besos) where unit certificates equivalent to (10.2 percent shares) were distributed among the company employees free of cost for empowerment of the workers. Presently, GoP holds 74.82 percent of OGDC shares and plans to monetise up to 10 percent OGDC shares by means of an issuance of Exchangeable Bond to international institutional investors ("Transaction"), jointly administered by the Privatisation Commission and the Finance Division.
The Transaction will be jointly led by at least 2 (two) international Bookrunners who have recognised equity linked sales, distribution, and underwriting capabilities and demonstrable track record of successfully managing such issuances. The FAC will preferably include a local financial institution as part of the consortium. The Interested Parties were asked to demonstrate post-issuance backup capabilities and provide after-listing performance of the recent equity linked instruments successfully listed by them.
The potential parties were asked to send their EOIs containing, in no more than 15 pages, a statement of technical qualification comprising experience of equity linked underwriting strength, distribution capabilities, presence and commitment to Pakistan, knowledge of the oil & gas industry and OGDC, advisory to emerging market entities for international listings, and competence and commitment of the team. -PR