The board of directors of Pioneer Cement Ltd has approved an increase in the number of company's ordinary shares to be issued to National Bank of Pakistan (NBP) under a loan restructuring package. According to a communiqué sent to KSE here on Wednesday, the company said that under the revised package, 26.229 million ordinary shares of Rs 15 per share would be issued to NBP.
Similarly, 63.695 million preference shares will be issued to NBP at a rate of Rs 10 per share. Under the revised terms, Pioneer Cement has negotiated with NBP reduction of interest rates and deferring of repayment instalments of December, 2009 and March and June of 2010 due to liquidity issues, as a result of slump in cement prices over the last six months.