Saturday, October 16, 2010

MCB Bank Appointed Engro Rupiya Certificate Distributor

By our correspondent
KARACHI: MCB Bank Limited and Engro Corporation signed an agreement, appointing
MCB as a distributor for ENGRO Rupiya Certificates issue of Rs4 billion, a bank
statement said on Friday.
This initiative was spearheaded by the bank’s Investment Services Department that is
involved in the distribution of various mutual funds and investment schemes and has
grown over the last year to become Pakistan’s largest mutual fund distributor to retail
customers in terms of sales volume, it said.
Under this agreement, MCB Bank will offer the Engro Rupiya Certificate to retail savers
by offering an alternative investment option to conventional saving products and
schemes.
According to details, ENGRO Rupiya Certificate is available for subscription from
October 15 for three months and will mature three years after the closing date of
subscription.
The issuing amount is inclusive of the Green Shoe Option of Rs2 billion, it said.
The limit for minimum investment is Rs25,000 for the subscription period of three
months. The profit will be distributed on semi-annual basis at a fixed rate of 14.50
percent per annum.
According to the statement, ENGRO has selected MCB Bank as one of the primary
distributors of its first retail term finance certificate (TFC) issue based on the bank’s vast
network of 1,072 branches and strong customer relationships.
ENGRO has also selected IGI Investment Bank as the official trustee for the TFC and the
Central Depository Company (CDC) as the official registrar and transfer agents. The TFC
would be listed on the Karachi Stock Exchange (KSE).
At the signing ceremony, Group Head Wholesale Banking, Muhtashim Ashai, said that
the customers are increasingly looking for products that offer packaged solutions.
The TFCs being offered by the MCB Bank, he said, will address both their short- and
long-term saving needs.