HBL share sale to yield US$1.02 billion

HBLThe Government of Pakistan (GoP) will mobilize over US$ one billion from of its stake of 609 million share in Habib Bank Ltd (HBL). This deal that would surpass the equity capital market transactions of OGDCL (US$813 million) and PTCL (US$898 million). The Cabinet Committee on Privatization (CCoP) in its meeting on Saturday approved the strike price of Rs168 per share for the sale as recommended by the Privatization Commission.

The government accepted US$1.02 billion of bids, including a foreign exchange component of US$764 million. The HBL’s capital market transaction would help boost country’s foreign exchange reserves, stabilize economy, reduce inflation, strengthen currency, besides bringing positive impact to discount rate and reducing the cost of borrowing.

The participation of Lazard, the US-based world’s leading financial advisory and asset management firm, and the Sindh Pension Fund speaks volumes of the confidence that the international financial institutions have in Pakis-tan’s economic standing.

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