Investment Presentation Final

8/3/2019 Investment Presentation Final

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MCBCIBG

Presented by:

Fareesa Baig

Khizar Zulfiqar

Wajiha Khan


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Introduction

MCB Bank Limited, with more than 60 years of experience as oneof the leading banks in Pakistan, was incorporated on July 9 in1947.

MCB was nationalized along with other private banks in 1974 aspart 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 mostimportant business sectors of the country such as banking, textile,cement and insurance.

A domestic network of over 1,130 branches and 600 ATMs acrossPakistan with a customer base of 4.5 million (apprx.)

Deposit base of PKR. 462 bln (apprx.) and total assets of PKR 605bln (apprx.)


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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 helpeach other out so they are complementary


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Hierarchy

GroupHead

UnitHead

VicePresident

VicePresident


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Wholesalebanking group

Corporatebanking

Investmentbanking

Group head

Unit head

VP

VP

Cashmanagement

Financialinstitutions


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Investment

Banking Division

Project Finance

Equity &

AdvisoryServices

Debt Capital

Market &Syndications


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INVESTMENT BANKING

PRODUCTS & SERVICES:

Project & structured finance

Syndicated loans and debt capital markets

Quasi equity/hybrid instruments Equity capital raising

Advisory services

Facility administration Commercial banking


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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.) andtotal assets of PKR 605 bln (apprx.)


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Types of Commission

Advisory

Underwriting

Consultancy


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Corporate Centers

5 Corporate centers:

Karachi

Lahore

Islamabad

Multan

Faisalabad

There are Relationship Managers (RMs) whomanage relationships.

There are 10 corporate branches


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Potential Problems

Increasing Non Performing Loans (NPLs)

Sectors not performing well


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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


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Factors in selecting a

client

Company History

Any mega restructuring plans

Growth potential Financials

Projections

Companys assets and the Companys name


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Process of a Deal

The deal isselected

In-principleapproval is

taken

Term Sheet isprepared

Negotiationtakes place

Mandate isgiven

Legal advisorsare appointed

Financialcovenants are

set

Firm approvalis taken

Term Sheet issigned


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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


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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 !!)


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List of private investors include

The Bank of Punjab

Jahangir Siddiqui Investment Bank Ltd

PakLibya Holding Co.(Pvt.) Ltd

Aga Khan University foundation

Commercial union life insurance Company Ltd

Jahangir Siddiqui & Co Ltd

TrusteesUnit fund of Pakistan

Pak Oman Investment BSJS Balanced Fund

Atlas Investment bank

Dawood leasing Company


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Denominations:

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


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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.


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Redemption of Principle Payment:

Month Redemption

54 40% of issue amount




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Trophy Transaction

Issuer: Mobilink

Instruments:

Term Finance (PPTFC)

Islamic Mode of Finance

Syndicated Facility


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Issue Amount: Rs.7 Billion

Purpose: To fulfill CAPEX requirement foroperational efficiency and to get 3G license

Tenor: Coupon Rate:

Coupon Type and Frequency:

Trustee: Legal Council:

Arrangers: MCB

Documents

Investment Presentation Final