Karachi: MCB Bank Limited & Engro Corporation signed an agreement appointing MCB as a distributor for Engro’s Rupiya Certificates (ERC) issue of Rs four billion. This initiative was spearheaded by the Bank’s Investment Services Department that is currently involved in the delivery of various mutual funds and investment services and has grown over the last year to become Pakistan’s largest mutual fund distributor to retail customers in terms of sales volume.
Under this agreement MCB Bank will offer the Engro Rupiya Certificate to retail savers by offering an alternate investment option to conventional saving products & schemes.
According to the details, ERC will be available for subscription from October 15, 2010 for three months and will mature three years after the closing date of subscription. The issuing amount is inclusive of Green Shoe Option of Rs2 billion.
The lower limit of investment is Rs 25,000/- for the subscription period of 3 months. The profit will be distributed on semi-annual basis at a fixed rate of 14.50% per annum.
Engro has nominated MCB as one of the primary distributors of its first retail term finance certificate (TFC) issue through the bank’s vast network of 1,072 branches.
Engro has also selected IGI Investment Bank as the official trustee for the TFC and the Central Depository Company of Pakistan as the official registrar & transfer agents. The TFC will be shortly listed on the Karachi Stock Exchange (KSE).
At the signing ceremony, Group Head Wholesale Banking, Mr. Muhtashim Ashai, said that customers are increasingly looking for products that offer more wholesome solutions. Engro TFCs being offered by MCB, he added, will address both short and long term saving requirements. Mr. Ashai said this product has been developed with the tandem efforts of MCB and Engro.
Mr. Ruhail Mohammed, Chief Financial Officer Engro Corporation Limited expressed his confidence in the ability of the professional management of MCB to make the TFC subscription target of Rs4 billion successful.
Engro Corporation has planned an aggressive marketing campaign to allow distributors to reach their retail clients by making suitable arrangement for subscription of these units at designated branches. The information about the Engro TFCs would be easily accessible to applicants.
