Mobilink has raised Rs. 200 crore or Rs. 2 billion through privately placed Term Finance Certificates (TFCs) also known as secured loan raised through institutional investors, said a notice sent to Karachi Stock Exchange.
We are yet to ascertain whether this capital injection will be used for network expansion, 3G rollout, investment in branchless banking or for an upcoming acquisition. But we are certain that this fund will not be used for meeting operational expenses.
Trading in Mobilink’s TFCs will only take place between the members outside the stock exchange system and settlement of trade will take place on counter party basis. The market lot of one certificate will be of a face value of Rs 100,000 and the minimum amount per transaction (only between institutional investors) will not be less than one million rupees.
According to details ProPakistani has got, the maturity of these TFCs are up to 48 months with the maturity date of March and April 2016 with an expected interest rate of KIBOR plus 2.65% per annum.
The principle repayment of this Rs 200 Crore loan will start from 3rd month of issuance and will be paid in installments of 10%, 20%, 30% and 40% in 1st, 2nd, 3rd, and 4th year, respectively.
These loans are rated Single A plus (A+) by PACRA, which denotes a strong capacity of timely financial commitments, and are secured by Mobilink’s all present and future movable long-term assets.
Renowned Banks, Insurance companies and provident funds of multinationals in Pakistan have put their money behind these TFCs. Half of the contributions are made by three banks with JS Bank investing Rs 45 Crore and Silk Bank and KASB bank putting Rs 25 Crore each.
Following is the list of Institutional investors (clicking on image will open it in full size):