about business and finance

2. Bilal Nasser
Waqas Khalid
Misbah Jamil
Khurram Waheed
M.Salahudin Sultan
Sadam Rafay

3. “ Importance of Debts /Bonds in
Pakistan Perspective”

4. It is a place where debt instruments including T-bill , Bonds,TFCs etc. are traded.
Importance of bonds/debt in market
 Opportunity for investor to diversify their investment portfolio.
 Financing the development activities of govt.
 Less risky as compared to equity market which leads to encourage low investment which
leads to inflow of funds in the economy.
 Efficient mobilization and allocation of resources.
 Higher liquidity & control over credit.

5. Deals with all debt instruments, government
securities corporate entities
The market is regulated under the Regulation
Governing Bonds Automated Trading Regulations
Expansion in banking sector and other financial
institutions have increased the competition
Formed a secondary debt market for government
securities and treasury bills
Financial institutions are now compelled to offer
higher interest rates on deposits.

6. Political instability and uncertainty.
Debt crisis
Political interference in regulatory
Unawareness of proceedings and new offerings of
financial products.
Lack of accountability
Issuance of bonds is not clear, transparent and proper.
Lack of proper benchmarking in case of long term
loans
High Issuing Cost

7.  Better than any other investment alternative as it guarantees, high
profit, low risk and timely payments with no uncertainty involved

8.  High profit margin (14.5% p.a)
 Twice interest payments in a year
 Issued for the period of 3years
 Low initial investment i.e. 25000
 Best solution for investment
 Money pay back before maturity

9. There is no restriction or any strict eligibility criteria
to invest in rupiah certificate.
Anyone foreign or Pakistani national, individual or a
company (to the extent legal requirements are
fulfilled) can purchase the certificate and become part
of Engro family.

10. Standard chartered
NIB bank
UBL
Habib bank limited
City bank ,MCB
BMA Financials
Allied Bank Limited
IGI
JSBL
Bank Alfalah

11. Convenience
Higher return
Encashment any time
Any one can invest
Deduction of zakat
Deduction of income tax
Risk free investment
Innovative scheme

12.  OGDCL’s (Oil and Gas Development Company
Limited) is the largest petroleum, exploration,
production and development company in Pakistan
listed on all 3 stock Exchange of Pakistan as well as
London stock exchange
 Government of Pakistan (GOP) offerings 4.98% of
OGDCL shares via an initial public offering (IPO)
and secondary offering 9.5% shares in the form of
Global depositary receipt at London stock exchange
in 2006. Secondary public offering of 0.5% to the
general public.

13. GOP further offering shares via The Benazir Employee
Stock Scheme 10.2% shares were distributed among the
company employees free of cost.
Presently, Government of Pakistan Holds 74.82% of
OGDCL shares and planned to maximize up to 10% by
mean of an issuance of exchangeable bond to international
institutional investors.
The Government wants to increase of monetizing up to 10
% shares of OGDCl by issuance of exchangeable bonds.
The Government wants to increase of monetizing up
to 10 % shares of OGDCl by issuance of exchangeable
bonds.

14. In this article OGDCL is going to improve their
diversification through $500 Million exchangeable
bonds.
The OGDCL bond activity builds and fulfills this
phrase “Never put all your eggs in one basket.”

15. It would be a high quality of international investor’s
base and it would improve domestic capital market
through increased foreign institutional investors and
foreign direct investment flows.
The financial institutions (Citibank, J P Morgan, Nomura
Investment Inc; UK, Barclays Bank, Morgan Stanley,
Goldman Sachs, Credit Suisse, Merrill Lynch ) included in
this process.

16. The government raised a net amount of 64.31
billion as against the target of Rs 60 billions
through the auction of Pakistan investment bonds
Government of Pakistan issued Ijara sukuk had
been a longstanding need of Islamic banking
industry, also served as a new source of funds for
the government.

17. The report predicted that the introduction of this
platform is expected to provide not only a boost to
fixed income market; it also has a lot for all
market participants.
Moreover, the platform is likely to attract more
investors to the market as the price discovery
process becomes much easier resulting into
enhanced liquidity and lower liquidity premium.

18. The credit rating agency (Standard & Poor’s)
assessment of Pakistan’s creditworthiness is
remarkably blunt
The three-way political struggle between the
executive, the judiciary and the military is the single
biggest risk to Pakistan’s economic stability and it is
growing.

19.  Government should take decision for long term
bonds and short term bonds and they should use
junk bonds for raising capital against higher rate of
return.
 Pakistani government highly base on financial aid to
foreign countries and this aid is declining day by day.
 It has a 2.4 billion worth of debt repayment in 2012
for achieving this goal they should increase capital
by junk bonds

20. In this Article Karachi Electric Supply Company has
launched the public offering of Pakistan’s first ever
Utility Sector Retail Bond Issue, titled: AZM TFCs
(Term Finance Certificates) of 2 Billion on May 23.
The Company Issued three types of TFCs which have
the different time periods and maturity time and the
Coupon rates.

21. I am going to discuss about only one TFC which is as
follows:
Coupon rate is 13.00% p.a (per annum) payable
monthly for the 13 month issue.
The total face value of the issue is Rs. 2,000 million.