May 3, 2006	Wednesday	Rabi-us-Sani 4, 1427

KARACHI, May 2: Encouraged by the success of Pakistan’s sovereign bond issues, at least two leading companies are considering selling bonds on international markets in coming months, bankers and officials say.

Bankers say Mobilink, market leader among Pakistan’s cellular network operators, and Engro Chemicals, a major fertiliser and chemicals maker, are both actively exploring plans to sell bonds. Neither have made any announcements.

Analysts said the funds would be used for expansion.

“The plans for Mobilink are at a very advanced stage, and they are expected to appoint lead managers for the issue in the next few weeks,” said a banker familiar with the deal.

“They would probably go for a eurobond worth around $200-$300 million.”

A finance ministry official confirmed Mobilink, run by Egypt-based regional telephone operator Orascom Telecom, was planning a bond issue.

According to bankers, Engro Chemicals is seeking to raise up to $700 million, probably from a variety of sources.

“They have not yet finalised their plans, but most likely they would raise some portion of this amount through a global bond issuance,” a banker said.

Engro has a 17 per cent share in Pakistan’s urea market and 20 per cent in DAP (di-ammonium phosphate).

Pakistan, which had been under economic sanctions after conducting nuclear tests in mid-1998, has made three forays to the international debt market since 2004. In March, the government sold $800 million in a two-part 10- and 30-year global bond deal, after securing orders for around $2 billion.

In January 2005, it sold $600 million in five-year Islamic bonds. In February 2004, it raised $500 million in five-year eurobonds.—Reuters