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Pakistan : IFC exercises option to convert part of convertible loan into ENGRO FERTILIZERS stocks

June 30, 2014

As the IFC has exercised its option to turn part of its convertible loan amount into the company's shares, Engro Fertilizers will issue 20.541 million stocks totaling Rs493 million ($5 million) to World Bank Group member, International Finance Corporation, (IFC).

An official document says that the stocks at the option price of Rs24 per share will be credited into bank's account with the Central Depository Company. IFC had offered a $30 million loan to Engro Fertilizers Pakistan Limited, a 100%-owned subsidiary of Engro Corporation, in April 2011 to help the firm with an expansion plan that will more than double production and generate work opportunities. IFC's investment was meant to help Engro boost production of urea fertiliser, the key nitrogenous fertilizer, from 0.9 million tonnes per year to 2.20 million tonnes per annum, supporting Pakistan's key agriculture industry, which was affected by heavy floods in 2010.

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Source: TendersInfo (India)