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CIBG
Presented by: Fareesa Baig Khizar Zulfiqar Wajiha Khan
Introduction
MCB Bank Limited, with more than 60 years of experience as one of the leading banks in Pakistan, was incorporated on July 9 in 1947. MCB was nationalized along with other private banks in 1974 as part of Government of Pakistan's economic reform movement and was later privatized to Nishat Group lead consortium in 1991. Nishat Group is one of the leading and most diversified business groups in Pakistan. The group has strong presence in the most important business sectors of the country such as banking, textile, cement and insurance. A domestic network of over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5 million (apprx.) Deposit base of PKR. 462 bln (apprx.) and total assets of PKR 605 bln (apprx.)
Hierarchy
Group Head Unit Head Vice President Vice President
Group head
Unit head
VP
VP
Investment Banking Division Equity & Advisory Services Debt Capital Market & Syndications
Project Finance
Competitive Advantage
MCB has the 4th largest domestic network Strong presence in the following sectors: - Energy - Textile - Cement Deposit base of PKR. 462 bln (apprx.) and total assets of PKR 605 bln (apprx.)
Types of Commission
Advisory Underwriting Consultancy
Corporate Centers
5 Corporate centers: Karachi Lahore Islamabad Multan Faisalabad There are Relationship Managers (RMs) who manage relationships. There are 10 corporate branches
Potential Problems
Increasing Non Performing Loans (NPLs) Sectors not performing well
Process of a Deal
The deal is selected Legal advisors are appointed
Financial covenants are set
Mandate is given
Trophy Transaction
Issuer: MCB Instrument: unsecured and subordinated Term Finance Certificate Amount : Rs.1600 million
RS 1400 million through private placments Rs 200 million through an IPO
Tenor : Five and a half (5 ) years Legal Advisors : Mandviwalla & Zafar Trustee : ORIX Investment Bank Limited Rating : A+ by JCR- VIS
Underwriten By: JS Investment Bank Ltd, The Bank of Punjab , ATLAS investment Bank , Dawood Leasing Company. Purpose : To fulfill the minimum capital requirements as per the guidelines set by the SBP . To support MCBs ongoing banking operations To Improvement of the maturity structure of Assets and liabilities of the bank. And if required, acquisition of United Bank Limited; (which never happened !!)
Denominations:
TFC denomination for public investors:
Rs 5000 Rs 25,000 Rs 50,000 Rs 100,000
Coupon payments :
11 Semiannual payments Rate: base rate (R)+ 1.50% p.a Floor of 11.75% p.a. Cap of 15.75% p.a.
base rate defined as the cut- off yield on the last successful 5 year Pakistan Investment Bond auction conducted by the SBP.
Trophy Transaction
Issuer: Mobilink Instruments:
Term Finance (PPTFC) Islamic Mode of Finance Syndicated Facility
Issue Amount: Rs.7 Billion Purpose: To fulfill CAPEX requirement for operational efficiency and to get 3G license Tenor: Coupon Rate: Coupon Type and Frequency: Trustee: Legal Council: Arrangers: MCB