Azgard Nine to issue $260 mln bond

Azgard Nine said on Tuesday to it plans to issue bonds worth up to $260 million in the international capital market.
“Depending on the market conditions when the bonds are taken to the market, we expect the tenor of the bonds to be between seven and 10 years,” the company said in a statement to the Karachi Stock Exchange.
According to banking sources, Azgard Nine has already awarded the mandate to manage the dollar-denominated bond to Citigroup.
The company did not say when it plans to issue the bonds, but the sources said it will take place in end-August or early September.
Last month, United Bank Ltd. said it plans to issue an overseas bond worth up to $250 million to raise Tier II capital over the next two or three months.
In November, Pakistan Mobile Communications (Pvt) Ltd. (Mobilink) raised $250 million in funds for expansion by selling a seven-year global bond.
Analysts said the availability of liquidity for emerging markets globally was encouraging Pakistani companies to seek funds overseas.

Copyright Reuters, 2007