Alpha fmc investment management distribution presentation final
Investment Presentation Final
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Transcript of Investment Presentation Final
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MCBCIBG
Presented by:
Fareesa Baig
Khizar Zulfiqar
Wajiha Khan
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Introduction
MCB Bank Limited, with more than 60 years of experience as oneof the leading banks in Pakistan, was incorporated on July 9 in1947.
MCB was nationalized along with other private banks in 1974 aspart 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 mostimportant business sectors of the country such as banking, textile,cement and insurance.
A domestic network of over 1,130 branches and 600 ATMs acrossPakistan with a customer base of 4.5 million (apprx.)
Deposit base of PKR. 462 bln (apprx.) and total assets of PKR 605bln (apprx.)
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Investment Banking
Division
Comes under the Wholesale Banking Group
The customers are Financial Institutions (FIs)
and Corporate
IB doesnt report to the Corporate Banking
Department
IB and Corporate Banking Department helpeach other out so they are complementary
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Hierarchy
GroupHead
UnitHead
VicePresident
VicePresident
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Wholesalebanking group
Corporatebanking
Investmentbanking
Group head
Unit head
VP
VP
Cashmanagement
Financialinstitutions
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Investment
Banking Division
Project Finance
Equity &
AdvisoryServices
Debt Capital
Market &Syndications
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INVESTMENT BANKING
PRODUCTS & SERVICES:
Project & structured finance
Syndicated loans and debt capital markets
Quasi equity/hybrid instruments Equity capital raising
Advisory services
Facility administration Commercial banking
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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.) andtotal assets of PKR 605 bln (apprx.)
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Types of Commission
Advisory
Underwriting
Consultancy
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Corporate Centers
5 Corporate centers:
Karachi
Lahore
Islamabad
Multan
Faisalabad
There are Relationship Managers (RMs) whomanage relationships.
There are 10 corporate branches
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Potential Problems
Increasing Non Performing Loans (NPLs)
Sectors not performing well
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How to get a deal
Corporate Banking Department maintains
relations with old clients
CB approaches IB if a deal comes from the
existing clients
Other banks approach IB
IB visits the KSE website for new deals
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Factors in selecting a
client
Company History
Any mega restructuring plans
Growth potential Financials
Projections
Companys assets and the Companys name
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Process of a Deal
The deal isselected
In-principleapproval is
taken
Term Sheet isprepared
Negotiationtakes place
Mandate isgiven
Legal advisorsare appointed
Financialcovenants are
set
Firm approvalis taken
Term Sheet issigned
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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
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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 !!)
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List of private investors include
The Bank of Punjab
Jahangir Siddiqui Investment Bank Ltd
PakLibya Holding Co.(Pvt.) Ltd
Aga Khan University foundation
Commercial union life insurance Company Ltd
Jahangir Siddiqui & Co Ltd
TrusteesUnit fund of Pakistan
Pak Oman Investment BSJS Balanced Fund
Atlas Investment bank
Dawood leasing Company
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Denominations:
TFC denomination for public investors:
Rs 5000
Rs 25,000
Rs 50,000
Rs 100,000 TFC denomination for private investors
In multiples of Rs 100,000
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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.
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Redemption of Principle Payment:
Month Redemption
54 40% of issue amount
60 30% of issue amount
66 30% of issue amount
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Trophy Transaction
Issuer: Mobilink
Instruments:
Term Finance (PPTFC)
Islamic Mode of Finance
Syndicated Facility
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Issue Amount: Rs.7 Billion
Purpose: To fulfill CAPEX requirement foroperational efficiency and to get 3G license
Tenor: Coupon Rate:
Coupon Type and Frequency:
Trustee: Legal Council:
Arrangers: MCB