KARACHI : MCB Bank Limited & Engro Corporation signed an agreement appointing MCB as a distributor for Engro’s Rupiya Certificates (ERC) issue of Rs. 4 billion. 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.
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 3 months and will mature 3 years after the closing date of subscription. The issuing amount is inclusive of Green Shoe Option of Rs2 billion.
The limit for minimum 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% p.a.
Engro has selected MCB Bank as one of the primary distributors of its first retail 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 of Pakistan as the official registrar & transfer agents. The TFC would be 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 packaged solutions. Engro TFCs being offered by MCB, he added, will address both their short & long term saving needs. Mr. Ashai said this product has been developed with the joint efforts of the professional teams 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.