Engro Rupiya Certificate launched once again
All key features remain the same as previous issue.
KARACHI:
Engro Corporation on Wednesday re-launched its Engro Rupiya Certificates for retail investors and invited applications, to collect funds for their businesses ranging from fertilisers to food products.
Encouraged by the response to the first offering of the certificates, the company had expressed interest in using the same avenue to raise more funds in a report issued to stakeholders in January earlier this year.
It had been reported earlier that the company was looking to gather up Rs3 billion through the second phase of the Rupiya Certificates. However, a company official could not confirm this figure and instead said, “We have announced the certificates with effect from June 1, 2011 but our official launch for retail investors is from June 2”.
The company official, however, did confirm that all key features of the term-finance certificates (TFCs) remain the same as the previous one. Investors will be offered a return of 14.5% for a fixed 3-year tenor, and will remain redeemable from Engro Corporation at a 2% charge at all times.
BMA Financial has appointed as a distributor for Engro Rupiya certificate, while the firm has also partnered with most leading banks of Pakistan and TCS. The minimum investment limit is Rs25,000 to go upwards, and the last date for applications is August 31,2011 or until the TFCs are fully subscribed.
The company is currently serving Rs89 billion in debt, exclusive of its earlier Rs4 billion Rupiya Certificates issue. BMA Capital Head of Equities Hamad Aslam, when asked about the large debt level of the firm and whether this was likely to impact applications, said that investors trust Engro Corporation since they cover large grounds. He said that the concerns of leverage are not high since “they (Engro Corporation) have pricing power and the economic turmoil has not had much of an impact on them. Their products, be it milk and ice-creams or fertilisers, are demand-safe - meaning the demand for these products will remain regardless of what the economy is going through”.
The company official, also when asked about high debt concerns, said that “We have set aside assets worth double the value of the TFC to guarantee returns and redemption.”
The first offering of the Rupiya Certificate, launched on October 14, 2010.
Published in The Express Tribune, June 2nd, 2011.
Engro Corporation on Wednesday re-launched its Engro Rupiya Certificates for retail investors and invited applications, to collect funds for their businesses ranging from fertilisers to food products.
Encouraged by the response to the first offering of the certificates, the company had expressed interest in using the same avenue to raise more funds in a report issued to stakeholders in January earlier this year.
It had been reported earlier that the company was looking to gather up Rs3 billion through the second phase of the Rupiya Certificates. However, a company official could not confirm this figure and instead said, “We have announced the certificates with effect from June 1, 2011 but our official launch for retail investors is from June 2”.
The company official, however, did confirm that all key features of the term-finance certificates (TFCs) remain the same as the previous one. Investors will be offered a return of 14.5% for a fixed 3-year tenor, and will remain redeemable from Engro Corporation at a 2% charge at all times.
BMA Financial has appointed as a distributor for Engro Rupiya certificate, while the firm has also partnered with most leading banks of Pakistan and TCS. The minimum investment limit is Rs25,000 to go upwards, and the last date for applications is August 31,2011 or until the TFCs are fully subscribed.
The company is currently serving Rs89 billion in debt, exclusive of its earlier Rs4 billion Rupiya Certificates issue. BMA Capital Head of Equities Hamad Aslam, when asked about the large debt level of the firm and whether this was likely to impact applications, said that investors trust Engro Corporation since they cover large grounds. He said that the concerns of leverage are not high since “they (Engro Corporation) have pricing power and the economic turmoil has not had much of an impact on them. Their products, be it milk and ice-creams or fertilisers, are demand-safe - meaning the demand for these products will remain regardless of what the economy is going through”.
The company official, also when asked about high debt concerns, said that “We have set aside assets worth double the value of the TFC to guarantee returns and redemption.”
The first offering of the Rupiya Certificate, launched on October 14, 2010.
Published in The Express Tribune, June 2nd, 2011.