960429

Liabilities touch Rs 3844 m

SNGP may

float TFCs,

convertible bonds

AZMATULLAH

ISLAMABAD: The Sui Northern Gas Pipelines (SNGP) is contemplating to float Term Finance Certificates (TFCs) and convertible bonds to make up for shortage of funds needed to finance its long-term investment programme.

The company may also consider issuance of new equity, said officials.

They said investment programme at present stuck up for want of funds and internally generated money is barely enough to meet capital expenditure.

The accrued and other liabilities of the SNGP have almost doubled during the second half of the last year.

The six monthly accounts of Sui Northern Gas Pipelines Limited (SNGPL) ended December 31, 1995, showed that accrued and other liabilities have touched Rs. 3844 million against Rs. 1984 million in the corresponding period last year.

Officials say sudden rise in liabilities is far in excess of amounts recoverable as trade debts.

They say the current illiquidity is result of non-disbursement of funds by NDFC and other lenders with whom loan agreements have been executed.

The company officials blamed credit restrictions imposed by the State Bank on commercial banks for hampering release of comitted funds. The company management has approached the finace ministry to seek relaxation in the credit restrictions.

Sources said that during the period in question, financial charges of the company have also risen by Rs. 45 million. The company attributes this rise to further withdrawals of foreign currency loans, higher incidence of exchange risk fee and full impact of loans withdrawn from January to June 1995.