Mobilink Raises Rs. 2 Billion Through Long-Term Loans | InfoZonePK

Mobilink has raised 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.

It is not decided yet whether this capital injection will be used for network expansion, 3G rollout, investment in branchless banking or for an upcoming acquisition. But it is decided that this fund will not used for meeting operational expanses.

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 be less than that one million rupees.

According to details, 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 respectively.

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 donates 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.