10-01-2009, 10:51 PM
Star
I am not aware of the possibility of issuance of warrants in Pakistan. On SECP's webpage there is no such guideline, rules or statute. We can only see regulations for issuance of TFCs, Preference Shares and Commercial Paper etc.
Let's see what other members opine.
Commercial paper would be very interesting to see in market as well but problem is that like short term borrowing (it has to be maximum for one year) it has to be repaid in cash and cannot be converted.
The best solution in Pakistan appears to be the issuance of Preference Shares with a conversion option "at the discretion of issuer" i.e. call option. A properly drafted agreement will also render this arrangement to be recorded as part of equity instead of debt under IFRSs so it can also be helpful in strengthening the equity base.
Ask the company management to think on it.
Regards,
KAMRAN.
I am not aware of the possibility of issuance of warrants in Pakistan. On SECP's webpage there is no such guideline, rules or statute. We can only see regulations for issuance of TFCs, Preference Shares and Commercial Paper etc.
Let's see what other members opine.
Commercial paper would be very interesting to see in market as well but problem is that like short term borrowing (it has to be maximum for one year) it has to be repaid in cash and cannot be converted.
The best solution in Pakistan appears to be the issuance of Preference Shares with a conversion option "at the discretion of issuer" i.e. call option. A properly drafted agreement will also render this arrangement to be recorded as part of equity instead of debt under IFRSs so it can also be helpful in strengthening the equity base.
Ask the company management to think on it.
Regards,
KAMRAN.
