| KARACHI: The United Bank Limited (UBL) is going to float Rs2
billion Term Finance Certificates (TFC) for the general public
through an Initial Public Offer (IPO) on August 9 and 10.
The issue has a tenure of eight years and would provide investors
a fixed return of 8.45 per cent, payable semi-annually.
According to the bank, the pre-IPO amount of Rs1.5 billion
has been successfully placed with 27 reputable institutions,
comprising commercial banks, insurance companies, mutual funds
and provident funds.
The President UBL, Atif R Bokhari, while giving a presentation
in a local hotel on Thursday, said, "The issue would
be a part of the banks Tier-2 capital efforts and the Rs 2
billion issue would contain rated, listed, unsecured and sub-ordinate
TFCs."
The TFCs are structured to redeem 0.25 per cent of principal
in the first 78 months and the remaining principal in three
semi-annual instalments of 33.25 per cent each, starting from
the 84th month.
The advisers and arrangers of the listed TFC issue for UBL
are Aqeel Karim Dhedhi Securities, Faysal Bank and Elixir
Securities.
At present, the UBL has assets of over Rs190 billion, net
assets of about Rs13 billion and a branch network of over
1,000 in Pakistan and 15 overseas. |
