M/s.

Dawood Hercules Chemical Limited

Proposing Unit
Customer Since Activity Corporate Banking (South) 28/06/2000 Chemicals & Fertilizer PKR MILLIONS

Group Exposure
Current Exposure Proposed by Group (WBG) Recommended HRMG

Funded Non Funded Total

4,716.0 5,716.0 5,716.0 1,387.0 1,387.0 1,387.0 6,103.0 7,103.0 7,103.00

LTL
1430.0 1,430.0 1,430.0

*In-Principal App. for Rs.3.8Bn is given in Engro Chem. & LOI for Rs.439.2M is under consideration for Innovative Automation.

Recommended Exposure of RMG by group constituent Dawood Hercules Current New Enh /(Red)
Funded Non Funded Total 500.0 500.0 750.0 750.0 1,000.0 1,000.0 (150.0) (150.0) (250.0) (250.0)

Total
1,000.0 1,000.0 350.0 350.0 500.0 500.0

Variance
N/A 0.00% N/A -30.00% 0.00% -30.00% -33.33% 0.00% -33.33%

LTL
-

Dawood Lawrencepur Ltd.

Funded Non Funded Total

Central Insurance Company Ltd.

Funded Non Funded Total

Dawood Hercules Chemicals Limited (DHCL)

Request
WBG has requested fresh RF/DF-MMT Limit of Rs.1400M in Dawood Hercules Chemicals. Reduction in RF/DF-MMT limit of Dawood Lawrencepur & Central Insurance Ltd. by Rs.150M & Rs.250M respectively. Total reductions will be Rs.400M and incremental exposure will be Rs.1000M.

Pricing
RF DF-MMT Rs.1400M (Rs.1400M) 1MK + 1% Kibor + 1%

Justification
Dawood Hercules Chemicals is a part of Dawood Group, which has sound market reputation in number of sectors (Chemicals, Textiles, Information Technology, Insurance & Banking). Proposed exposure is fully secured with liquid security and in case of sudden price decline, bank reserves the right to serve top-up notice or sell down the underlying security. Per Party & Per Group Exposures (excluding in-principle approvals) are within MCBs Limit.

Recommendation
Recommended Fresh RF/DF-MMT Limit of Rs.1400M in the account of Dawood Hercules Chemicals. Reduction in RF/DF-MMT Limit by Rs.150M (making revised limit Rs.350M) of Dawood Lawrencepur. Reduction in RF/DF-MMT Limit by Rs.250M (making revised limit Rs.500M) of Central Insurance Co.