PROPAKISTANI: 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.
However, this is yet not clear that this capital injection will be used for network expansion, 3G rollout, investment in branchless banking or for an upcoming acquisition.
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 plus 2.65 per cent per annum.
The principal repayment of this loan will start from 3rd month of issuance and will be paid in installments.
These loans are rated Single A plus (A+) by PACRA, which denotes a strong capacity of timely financial commitments, and are secured by Mobilinks 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.
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