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Summer Internship
Report: Engro
Fertilizers
T ah a M an so o r
L ah o r e U n i v er si t y o f
M an agem en t Sc i en c es
En gr o Fer t i l i zer s
1 1 / 7 / 2 0 1 4
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Preface
Before the internship commenced, the two projects that were to be pursued were identified as
the Sukuk Issue of PKR 4 Billion to repay the loan taken from Engro Corporation, and the
improvement and up-gradation of the insurance portal. However, after I joined, my
work became exclusively centered on finance, and the insurance portal project was
replaced by the International Finance Corporation’s (IFC) loan conversion, which I was
tasked to handle almost independently in co-ordination with the legal department of
Engro Corporation. In the Sukuk Issue which was completed on the 9th
of July (counting
all legal formalities, apart from the listing of the security which will commence soon), I
was tasked with assisting the Treasury Analyst who was heading this project. My work
ranged from a multitude of tasks assigned to me which helped the project head in
whatever capacity I could. Apart from these projects, I also represented Engro Fertilizers
at FAMCO and CDC as an Engro employee for different purposes. The people involved
with these projects and who I assisted and worked with during the course of six weeks
were as follows:
Abdullah Khawar (Treasury Analyst)
Sabih-ur-Rehman Shad (Business Analyst)
Samira Kamil (Legal Officer ECorp)
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Project Detail
This section will aim to explain in detail the scope and formalities that I had to work with. It has
been divided into two sub-sections which aim to outline the processes and specifications that
dealt with each of the projects I worked with.
Sukuk Issue
The Sukuk Issue was a project headed by Abdullah Khawar from the Treasury section of Finance
and Planning. He was assisted by Sabih-ur-Rehman Shad who has recently joined EFert as a
Business Analyst. I, as an intern assisted them with several miscellaneous tasks which ranged
from correcting mistakes in legal documents, creating an Excel sheet for the schedule of
payments, keeping the originals in hard copy making sure that they were in order and properly
arranged.
The project itself was a loan repayment to Engro Corp in form of issuance of Sukuk (Islamic)
bonds. This loan was worth PKR 4 Billion, and the Sukuk issue completed recently was worth
PKR 3.2 Billion (with a PKR 0.2 Billion Green Shoe Option). The potential investors were
restricted to be only Financial Institutions (FI’s), not individuals. Some of the investors that
invested in this Sukuk were Alfalah GHP, BMA, Meezan Bank (as the only banking institution
acting as an investor due to an earlier agreement). The legal team in charge of handling this
transaction was Mohsin Tayebaly Company (MTC), while Pak-Brunei Investment Company
(PBIC) acted as the Trustee. The transaction was a fantastic learning experience as I got to
experience first-hand what financial processes and formalities were involved, and it helped me
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gauge their importance in such financial transactions. The legal formalities were finally
completed on 9th
July which ended with the inflow of money into EFert. The last leg of this
project is the listing of the security which will be completed in 4-6 further weeks and will be
handled by F&P.
IFC Loan Conversion
This project was assigned to me by Abdullah Khawar and I handled it almost independently in
coordination with Samira Kamil from the legal department at Engro Corporation. The
background is that EFert had an outstanding loan of $30 Million from IFC, out of which $9
Million was convertible into shares at a pre-determined option price. When I started this
internship, IFC had expressed its desire to exercise this option and use the conversion. I was
tasked with handling all the approvals and formalities regarding this conversion. IFC exercised
this option and opted to convert $5 Million out of the $9 Million into shares. This required me
to keep in regular touch with Central Depository Committee (CDC), Securities and Exchange
Commission of Pakistan (SECP), National Bank of Pakistan (NBP), auditors at PWC and the legal
department of ECorp. Today, we will get the original certificate from the auditors and
consequently it will be sent to CDC which will result in the generation of an invoice regarding
this conversion which will basically end the required actions from our side. This Conversion was
also an immense learning experience as it helped me gain the independence to handle a
transaction and interact with a variety of individuals each with their own specific demands,
working styles and characteristics.
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Conclusion
The internship was an amazing learning experience which has equipped me with real-world
knowledge of finance and its implications in the processes carried out by corporations and their
finance departments. It has made me confident of interacting with individuals who are well-
versed in their own fields. The experience of representing EFert at FAMCO and CDC as an
employee gave me immense confidence to handle situations and come up with impromptu
solutions and discussions with people. Apart from the technical aspects, what has been the
most helpful aspect of this internship is the ability to solve problems arising at work
independently. The development of problem-solving ability will undoubtedly help me in my
future jobs and assist me in countering various situations more effectively.
Recommendations
The HR department has done a good job in assigning interns suitable mentors and supervisors
who have been of a lot of help. The HR department itself has always been approachable and
interactive which has helped ensure that there are almost no problems arising at the workplace
for interns. One possible recommendation is that the future internship programs are designed
so as to let interns work together on common projects, overseen by an employee. For example,
assign a real project exclusively to interns, including all aspects from HR to Finance to
Marketing. This will help future interns work independently, which as I have learned through
the past six weeks, is an essential component of working in this environment.
