A five-year convertible bond issue by the government was oversubscribed by 19 February, joint lead manager, Nomura International of Japan, has announced. The bonds have a five-year maturity and are exchangeable into shares in Pakistan Telecommunication Company (PTC), scheduled for privatisation in fiscal year 1997/98.

The bond issue is worth $150 million. Bonds have an indicated coupon rate of 6 per cent payable semi-annually. Investors will also have three-year option to sell the bonds at a price to yield 150 basis points above three- year US Treasuries. The issuer will also have a call option at par from February 2000. The issue was expected to close on 19 February and pricing to be announced shortly after. The issue is being jointly managed by Union Bank of Switzerland and Nomura.

The government is also planning a bond issue in March, to be managed by ANZ Investment Bank.