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Presented by: Fareesa Baig Khizar Zulfiqar Wajiha Khan

MCB Bank Limited, with more than 60 years of experience as one of the leading banks in Pakistan, was incorporated on July 9 in 1947. MCB was nationalized along with other private banks in 1974 as part 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 most important business sectors of the country such as banking, textile, cement and insurance. A domestic network of over 1,130 branches and 600 ATMs across Pakistan with a customer base of 4.5 million (apprx.) Deposit base of PKR. 462 bln (apprx.) and total assets of PKR 605 bln (apprx.)

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 help each other out so they are complementary

Group Head Unit Head Vice President Vice President

Wholesale banking group Corporate banking Investment banking

Cash management Financial institutions

Group head

Unit head



Investment Banking Division Equity & Advisory Services Debt Capital Market & Syndications

Project Finance


Project & structured finance Syndicated loans and debt capital markets Quasi equity/hybrid instruments Equity capital raising Advisory services Facility administration Commercial banking

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.) and total assets of PKR 605 bln (apprx.)

Types of Commission
Advisory Underwriting Consultancy

Corporate Centers
5 Corporate centers: Karachi Lahore Islamabad Multan Faisalabad There are Relationship Managers (RMs) who manage relationships. There are 10 corporate branches

Potential Problems
Increasing Non Performing Loans (NPLs) Sectors not performing well

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

Factors in selecting a client

Company History Any mega restructuring plans Growth potential Financials Projections Companys assets and the Companys name

Process of a Deal
The deal is selected Legal advisors are appointed
Financial covenants are set

In-principle approval is taken

Mandate is given

Firm approval is taken

Term Sheet is prepared

Negotiation takes place

Term Sheet is signed

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

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 !!)

List of private investors include

The Bank of Punjab Jahangir Siddiqui Investment Bank Ltd Pak Libya Holding Co.(Pvt.) Ltd Aga Khan University foundation Commercial union life insurance Company Ltd Jahangir Siddiqui & Co Ltd Trustees Unit fund of Pakistan Pak Oman Investment BSJS Balanced Fund Atlas Investment bank Dawood leasing Company

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

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.

Redemption of Principle Payment:

Month 54 60 66 Redemption 40% of issue amount 30% of issue amount 30% of issue amount

Trophy Transaction
Issuer: Mobilink Instruments:
Term Finance (PPTFC) Islamic Mode of Finance Syndicated Facility

Issue Amount: Rs.7 Billion Purpose: To fulfill CAPEX requirement for operational efficiency and to get 3G license Tenor: Coupon Rate: Coupon Type and Frequency: Trustee: Legal Council: Arrangers: MCB