If the investors’ response to the 5th Term Finance Certificates (TFCs) of the Bank Alfalah Limited (BAL) is any criteria, there is a strong demand for new investment windows on the recently-demutualised Karachi Stocks Exchange (KSE).
Thursday saw the BAL, claiming to have become the country’s 6th largest bank, celebrating the formal listing and quotation of its rated, listed, unsecured and subordinated TFCs on the Karachi bourse.
“We are proud of this debt market instrument which was oversubscribed by the investors on stocks market which shows that the investors still have great confidence in the Bank Alfalah,” Bajwa told reporters at a gong ceremony organised by the KSE at the Exchange to mark formal listing of the newly-launched debt security on the equity market.
The listing followed the KSE’s nod which was accorded after the completion of all relevant listing requirements.
“We wish to thank all the investors for showing such confidence in the bank,” said Bajwa adding his side was fully committed to contributing towards the development of the debt capital market in Pakistan and this fifth TFC is another step in this direction”.
Salim Raza said the debt instrument would augur well for the country’s bond market which was a friction less than 5 percent, of the market.
To a question, Raza urged the current caretaker government in Islamabad to take what he called it “pre-IMF measures”. “We all hope that stabilization measures would come up ahead,” he remarked.
Arif Habib, the market maker of the TFCs, said the investors’ overwhelming response had set a franchise in the equity market. He said due to structural reforms introduced by the SECP and the KSE liquidity on the secondary market would certainly improve.
He said lack of awareness had kept the investors away from the stocks market which was offering higher returns on their investments compared to the banks.
Estimating the annual worker remittances at $ 20 billion being received by their remitters’ families through formal and informal channels, Arif said capital market was an attractive investment place for the overseas Pakistanis who must be earning $ 40-50 billion an year. “If we educate those investors the country would rely on external financing no further,” the business tycoon said.
