financing options markets structures participants.pdf

7/29/2019 Financing Options Markets Structures Participants.pdf

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Financing Options

P R E S I D E N T

M C B B A N K L I M I T E D

1 A P RI L 2 0 1 0


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Agenda

y Economy & Financing Landscape

y Market Participants{ Commercial Banks

s, pec a ze re genc es

{ Non-banking Finance Companies

{ Asset Management Companies / Trusts{ Overseas Lenders

y Concessional Schemes by State Bank of Pakistan

y oc a ec or nanc ngy Capital Raising Challenges faced by Foreign


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Economy & the Financing Landscape in Pakistan

y Significant Player{ Pakistan is the 27t largest economy in the world, in terms of purchasing power parity (PPP

GDP: USD 431.2bn*, as in 2008)

y Domestically-driven & Resilient.

economy is domestically-driven and major industries include textiles, power, chemicals,food processing, steel, transport, automobiles, machinery, construction

y Banking Sector is the Dominant Capital Provider{ For the first 9 months of this fiscal year (July 1 , 09 to Mar 13, 10), the incremental credit

off-take to Public Sector Enterprises and Private sector was Rs. 170 billion

{ As of December 2009, the banking system had excess liquidity of Rs. 600 billion overstatutory liquidity requirement of SBP

*Current Exchange Rate is Rs. 84/USD


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Commercial Banks


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Development Finance Institutions


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Non-Banking Finance Companies


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Asset Management Companies / Trusts


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Overseas Lenders


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Concessional Financing Schemes by State Bank


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Social Sector Finance


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Capital Raising Challenges faced by Foreign Investors

y Unfamiliarity fosters risk aversion

y

Implications on credit decision variables:{ Collateral

Ex osures ma need to be over-collateralized and creditenhancements such as third-party guarantees are strongly preferred

{ Capital Structure of Borrower

Banks expect higher equity contributions from foreign investors 25% or more

{ Long-term Capital Commitments

Foreign investors may need to assure local lenders of their continued

suppor nanc a o erw se o e r ven ures, an a ong- erminvestment horizon for their business interests in Pakistan

{ Careful Selection of Local Partners


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THANK YOU

For enquiries, please write to:

[email protected]. [email protected]

N O T H I N G S T A T E D H E R E I N M U S T B E C O N S T R U E D A S I N V E S T M E N T A D V I C E .T H E I N F O R M A T I O N I S P R O V I D E D O N A N A S - I S B A S I S , A N D M C B A S S U M E S

N O R E S P O N S I B I L I T Y F O R T H E A C C U R A C Y O R O M I S S I O N S C O N T A I N E DH E R E I N . F U R T H E R , T H I S I N F O R M A T I O N H A S B E E N P R O V I D E D W I T H O U T

A N Y L I A B I L I T Y , E X P R E S S O R I M P L I E D , O N P A R T O F M C B B A N K L I M I T E D O RI T S A F F I L I A T E D C O M P A N I E S .

financing options markets structures participants.pdf

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