KARACHI - Pakistan Petroleum Limited (PPL), countrys second largest energy explorer, is eyeing to issue around 200-400 million worth US dollar bond in the int'l debt market aimed at financing its growing inter-corporate debt and to provide sufficient liquidity for the potential acquisition of the British Petroleum assets in Pakistan, an analyst said on Wednesday. In order to mitigate the negative impacts of economic and political instability on companys earning and to pursue aggressive growth plans, PPL is interested in various financing options, including the issuance of dollar bonds. Currently, the company is working on 14 new exploration blocks. Though the companys financing plan and how much it would raise from the issuance of bond has not yet been finalised, but according to management and industry sources, the size could be about US $ 200-400mn (Rs 17.2 bn-Rs 34 bn). The company is also planning to raise debt through the local market. It is believed that amid rising demand of emerging market bonds, PPL may get a better price. With most of its revenue linked to US dollar, the core business will provide a partial hedge against any weakness in local currency, said Farhan Mahmood, energy sector analyst at Topeline Research. He further said that this could be the third Pakistani company that will raise debt from international market in last decade after Pace Pakistan and Mobilink. Moreover this issue will reintroduce Pakistan to foreign investors as there has been no international offering since the global financial meltdown that has severely affected Pakistan economy. With Pakistan 2016 and 2017 sovereign dollar bonds currently yielding close to 8.5 per cent, this state-owned unleveraged company would easily get financing between 8.5-9.5 percent, considering the rising demand for bonds in the international market, he added. Talking about the major reason behind this move, he said since E&P companies are badly affected by this inter corporate debt, it makes sense to tap finances at attractive prices. The company has overdue receivables of Rs 17b (approx. $ 200m). The company expects that overdue receivables could grow further and may potentially dry out liquidity for meeting drilling targets in future. According to analysts, yield-starved investors are rushing to emerging market bonds due to attractive yields they offer at a time when yield in developed countries is close to zero. Foreign investors have poured US $ 22.4 billion into emerging market bond funds so far this year, up from US $ 3.7 billion last year, as per EPFR, a data provider that monitors fund flows. In India, Reliance Industries and ICICI Bank are both planning to raise US $ 1 billion each through dollar bonds amid booming fixed income market. He predicted that the company may be interested in acquiring British Petroleum (BP) assets in Pakistan as it has only 7 per cent share in overall countrys oil production. BP Pakistan is considered to be oil rich company having the highest share of 16 per cent in country oil production after OGDC.