||KARACHI: In a presentation given at a local hotel, Mr. Atif
R. Bokhari, President United Bank Limited, discussed the salient
features of UBL's Rated, Listed, Unsecured and Subordinated
Term Finance Certificates Issue of Rs.2.0 billion to be offered
to the General Public through Initial Public Offering on August
9 and 10, 2004. The Issue would be part of its Tier-II capital.
Also present on this impressive ceremony were senior executives
of 27 reputable institutions, which have participated in the
Rs.1.5 billion Pre-IPO.
The Issue has a tenor of 8 years and would provide investors
a fixed return of 8.45% per annum, payable semi-annually.
The TFC is rated 'A' (Single A) by the JCR-VIS, which is a
SBP approved rating agency. The Pre-IPO amount of Rs 1.5 billion
has been successfully placed with 27 reputable institutions
comprising of commercial banks, insurance companies, mutual
funds and provident funds. The Advisors and Arrangers of this
largest listed TFC issue to be arranged for a bank in Pakistan
are Aqeel Karim Dhedhi Securities (Pvt.) Limited, Faysal Bank
Limited and Elixir Securities Pakistan (Pvt.) Limited.
The TFCs are structured to redeem 0.25% of principal in the
first 78 months and the remaining principal in three semi-annual
installments of 33.25% each, starting from the 84th month.
UBL is one of the largest commercial banks in Pakistan with
assets of over Rs.190 billion, Net Assets of over Rs.13 billion
and a solid track record of 43 years. UBL offers its services
through a nationwide network of over 1,000 branches spread
all over Pakistan and 15 overseas branches. The Bank earned
Rs 4.3 billion pre-tax profit in 2003, a 59 percent increase
over the previous year, and announced a dividend of 22.5 per
cent. This remarkable performance was based on a record growth
of 38 percent in advances, which grew from Rs 72.8 billion
in 2002 to Rs 100.2 billion in 2003 driven by growth in deposits
from Rs 158.3 billion in 2002 to Rs 185.1 billion in 2003.
The Bank was privatized in 2002, through the sale of 51 percent
stake to a consortium of the Abu Dhabi Group led by His Highness
Shaikh Nahayan Mabarak al Nahayan and the Bestway Group led
by Sir Mohammed Anwar Pervez, OBE, Hpk. The Issue is unsecured
and subordinated to payment of principal and profit to all
other indebtedness of the Bank including deposits.