Karachi October 25 2024: Pakistan State Oil, the largest oil marketing company in Pakistan, has approved loan facility of PKR 3.15 billion for remaining payments of estimated FEED cost for Pakistan Refinery Limited
“The shareholders resolved that the members of PSO hereby approve the amount of Rs. 3.15 billion or proportionate amount in USD for PRL’S FEED to be paid by PSO through loan facility to PRL” states the notification.
PSO will borrow the amount in Pak Rupees from local bank(s) and extend it as loan at market competitive rate (i.e. at same or higher premium) to PRL subject to necessary approval from 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.
For the purpose of loan, PSO shall have the first Pari-Passu right in the event of PRL’s default in repayment of loan. This provision shall be made part of the financing arrangement with PRL.
