PSO approves Rs3.15bn loan to propel PRL’s FEED costs

MG News | October 24, 2024 at 03:50 PM GMT+05:00

0:00

October 24, 2024 (MLN): After detailed deliberation, the Board of Management of Pakistan State Oil (PSX: PSO) has approved providing Rs3.15 billion (or a proportionate amount in USD) to Pakistan Refinery Limited (PRL) as a loan for FEED costs.

According to a notice issued by the oil giant to the PSX today, PSO will borrow the aforementioned amount in Pak Rupees from local banks and extend it as a loan to PRL at a market-competitive rate (i.e., at the same or a higher premium), subject to necessary approval from the SECP.

PRL will utilize the borrowed amount in Pak Rupees to purchase US dollars (through forward or spot contracts) to settle final FEED payments.

PSO will have the right of repayment and an option to convert the loan into equity after necessary approvals.

"This option will be utilized if deemed essential for PSO's long-term interests," the management stated.

Furthermore, for the purpose of the loan, PSO shall have the first Pari-Passu right in the event of PRL's default in repayment of the loan.

This provision shall be made part of the financing arrangement with PRL.

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	171,404.49 326.40M	-0.32% -556.16
ALLSHR	103,442.24 795.99M	-0.21% -217.04
KSE30	52,413.79 113.03M	-0.27% -143.72
KMI30	244,645.84 109.10M	-0.15% -378.05
KMIALLSHR	67,050.27 450.39M	-0.02% -14.08
BKTi	47,413.54 37.21M	-0.37% -176.81
OGTi	33,419.75 8.88M	-0.20% -67.52

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	87,895.00	89,510.00 85,135.00	3075.00 3.63%
BRENT CRUDE	60.55	60.65 59.40	0.73 1.22%
RICHARDS BAY COAL MONTHLY	91.00	0.00 0.00	2.30 2.59%
ROTTERDAM COAL MONTHLY	96.90	96.90 96.90	0.50 0.52%
USD RBD PALM OLEIN	1,016.00	1,016.00 1,016.00	0.00 0.00%
CRUDE OIL - WTI	56.54	56.72 55.61	0.54 0.96%
SUGAR #11 WORLD	14.85	14.87 14.45	0.37 2.56%