Bilal NasserWaqas KhalidMisbah JamilKhurram WaheedM.Salahudin SultanSadam Rafay

“ Importance of Debts /Bonds in Pakistan Perspective”

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.

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.

Political instability and uncertainty. Debt crisisPolitical interference in regulatoryUnawareness of proceedings and new offerings of

financial products.Lack of accountabilityIssuance of bonds is not clear, transparent and proper.Lack of proper benchmarking in case of long term

loansHigh Issuing Cost

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

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

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.

Standard charteredNIB bankUBLHabib bank limitedCity bank ,MCBBMA FinancialsAllied Bank LimitedIGIJSBLBank Alfalah

ConvenienceHigher returnEncashment any timeAny one can investDeduction of zakatDeduction of income taxRisk free investmentInnovative scheme

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.

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.

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.”

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.

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.

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.

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.

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

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.

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.