Pakistan Investment Bonds (PIBs) were subscribed by Pakistan State Oil Company Limited (PSO) in June, 2013, under the partial Circular Debt Resolution Plan of the Government of Pakistan, to settle its overdue receivables balances from Power Generation Companies.
The face value of the PIBs was Rs. 43,836.8 million with issue date of July 19, 2012, carrying on interest rate of 11.50% per annum. In order to finance the increasing receivables from Power Generation Companies, PSO borrowed Rs. 43,846.8 million from banks against these PIBs.
The above mentioned PIBs matured on July 19, 2017 and PSO has received the entire amount inclusive of the semi-annual coupon payment. The proceeds have been utilized to pay off PSO’s above mentioned short term borrowings.