20000218

Nishat Mills achieves

closure of Rs 516m

corporate paper

RECORDER REPORT

KARACHI: A three-year Private Placement has been closed for Nishat Mills Limited (NML).

The facility included issuance of Rs. 516 million Tradeable Corporate Paper and Rs. 50 million Medium Term facility.

The Corporate paper issue was subscribed by five major banks including National Bank of Pakistan, Allied Bank of Pakistan, Union Bank Limited, Faysal Bank Limited, Askari Commercial Bank and American Express Bank.

The deal was structured and arranged by American Express Bank Limited.

At the closing ceremony of the transaction here on Thursday, Tawfiq A. Husain, Country Manager, American Express Bank, said that large companies like Nishat Mills will need to approach the capital markets to meet their growing financing requirements.

By doing this, there will be more participation from the institutional investors and the secondary market will develop, he added.

He said AEB is well positioned to add value to its clients and has developed the necessary expertise for structuring Corporate Debt Paper.

He said that increase in this kind of activity will help for the growth of the secondary market in the country.

He said that in India, about 25 million dollar (Rs. 1.2 billion) commercial papers are transacted on daily basis.

He praised the progressive outlook of Nishat Group's management for raising funds through capital market instruments as opposed to just conventional loan.

Umar Mansha, Director, Nishat Mills, said that NML would always try to remain a market leader through investment in new technology and is fully committed to playing an active role in the industrialisation of the country and enhancing exports of value added products.

He felt that the development of the capital markets is essential for growth of financial sector in the country and as a leading company in the textile sector, NML is determined to play an active role in this regard.

Mansha also praised American Express Bank for the innovative structuring of the transaction and appreciated quick turn-around of all participating banks.