10th Wapda bond issue over-subscribed

LAHORE (March 05 2003) : Chairman Wapda Lieutenant General Zulfiqar Ali Khan (Retd) has said that over-subscription of Rs 7 billion against the targeted Rs 5.5 billion flotation of Wapda bonds' 10th issue reflects on the confidence of investors and non-bank financial institutions in Wapda.

The proceeds of the bond will meet the remaining local currency-funding requirement of Ghazi Barotha hydropower project and allied power dispersal projects expected to begin operation in May 2003, he added.

The Wapda chief was speaking at the signing ceremony of Rs 5.5 billion Wapda Bonds 10th issue held here on Tuesday.

The contract was signed by Aamir Zaidi on behalf of consortium and Muhammad Amjad General Manager Finance (Power) Wapda.

Members of the Authority and members of the consortium M/s ABN Amro bank, Khadim Ali Shah Bokhari & Company and Muslim Commercial Bank Ltd were also present on the occasion.

Addressing on the occasion, Eeiko Bronkhorst, Managing Director and head of Integrated Energy Asia for ABN Amro Bank, expressed satisfaction over the Wapda's performance regarding reduction of the line losses from 42 percent to 25.7 percent and successful efforts in increasing the hydropower component in Wapda's mixed power generation system.

ABN Amro would keep on promoting the Wapda's cause by helping it in its coming power projects, he added.

Member (Finance), Wapda, Javed Nizam said on the occasion that over-subscription of the Wapda bond's 10th issue would help in pacing up the work and completing different developmental activities at Ghazi Barotha project, which is the second largest hydropower project in Pakistan.

Nadir Rehman, CEO, Khadim Ali Shah Bukhari & Company and Aftab Manzoor, President, Muslim Commercial Bank, also lauded the Wapda performance and vowed to keep supporting the future power projects.

Wapda has successfully issued a number of bonds amounting to Rs 37 billion since 1998.

Four of these issues amounting to Rs 18 billion have already been redeemed and paid off by the Authority.

The 10th issue of Wapda Bonds would be the largest so far with an issue size of Rs 7 billion, including Rs 2 billion green-shoe option.

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