A notice sent to Karachi Stock Exchange has verified a turnover of Rs. 200 crore for Mobilink, raised through privately placed Term Finance Certificates (TFCs) also known as secured loan raised through institutional investors. Much speculation has arose regarding what use Mobilink will make of this capital. Will it be used for network expansion, investment in branchless banking, 3G rollout or for an upcoming acquisition. One thing that is certain is the minute chance of this capital being used for fulfilling operational expenses. No trading will occur within the stock exchange as this task has been left to members situated outside the stock exchange. The settlement of trade is said to having been taken 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.
These Term Finance Certificates hold a maturity of up to 48 months and a maturity date of March and April 2016. There is an expected interest rate of KIBOR plus 2.56%per annum. The 3rd month of issuance will initiate the repayment of this loan, with it being paid in installments of 10%, 20%, 30% and 40% in the 1st, 2nd, 3rd and 4th years, respectively. A powerful capability for timely financial commitments has been implied due to the loans receiving a Single A plus rating by PACRA. These loans are also secured by all of Mobilink’s present and future movable long-term assets. These TFC’s have gained much recognition from prestigious banks, insurance companies and provident funds of multinationals in Pakistan. All these aforementioned bodies have invested money in TFCs. The contributions made by JS Bank, Silk Bank and KASB constitute half of the total contributions made. Rs. 45 Crore and Rs 25 Crore each were contributed respectively by JS Bank, Silk Bank and KASB.