Note on FC convertible bonds Issued by Pace (Pakistan) Limited (PSX:PACE)
On 27 December 2007, BNY Corporate Trustee Services Limited, incorporated in the United Kingdom with its registered office at One Canada Square, London E14 5AL, entered into an agreement with the Company. The agreement stipulated that the Company would issue 25,000 convertible bonds of USD 1,000 each, amounting to USD 25 million. These foreign currency convertible bonds (FCCB) were listed on the Singapore Stock Exchange and became redeemable on 28 December 2012 at the accreted principal amount. The bonds carry a mark-up of 5.5% per annum, compounded semi-annually, accretive (up until 28 December 2012), and a cash interest of 1% per annum to be paid in arrears. The bondholders had the option to convert the bonds into equity shares of the Company at any time following the issue date until the maturity date at a price calculated as per the terms of the arrangement. As of 30 June 2022, USD 13 million worth of bonds have been converted into ordinary shares of the Company, and the remaining USD 12 million bonds, along with related interest, have not been repaid by the Company.
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