ENGRO CORPORATION LIMITED
(FORMERLY ENGRO CHEMICAL PAKISTAN LIMITED)
(FORMERLY ENGRO CHEMICAL PAKISTAN LIMITED)
3-YEAR FIXED RATE INSTRUMENT
PROFIT @ 14.5% PER ANNUM (FIXED)
Instrument Rated “AA” (Double A)
Entity Rating “AA” (Double A)
By The Pakistan Credit Rating Agency Limited (“PACRA”)
Public Subscription between
October 15, 2010 – January 14, 2011 (Both Days Inclusive)
During Banking Hours
During Banking Hours
give life to your money!
The Engro Rupiya Certificate is Engro's initiative to give you the opportunity to save with a name you trust! This is our first in the series of financial products aimed at giving you the profit on your savings, you deserve.
With the upheavals in the equity markets and shrinking bank spreads, there are limited options available for you to invest in a reliable; hassle free environment. With the launch of Engro Rupiya certificate, you can become a part of the Engro family and share its growth, with an unmatched profit rate of 14.5% from the day you invest.
subscription form:
a) download the following subscription
b) request for the form from any of our partner banks’ branches near you
to deposit your investment you could either
a) Visit the branches of any of our partners’ and submit the subscription form with your cheque/demand draft/pay order
or
b) Contact our Call center (Number) return the completed form with your cheque, demand draft or pay order to our door delivery staff, who will deliver it to Engro.
quick and easy free pick up
At Engro our investors’ convenience is our priority! With the Engro Rupiya Certificate you have the comfort of investing right from your door step. Call us at our UAN (111-Rupiya) 111-787-492 and we will collect your subscription form, NIC copy and pay order, demand draft or cheque from your residence.
how do i receive my profit:
No ques, no wait! It’s your profit and you choose how to receive it!
The profit on your certificate can be transferred to directly to the bank account mentioned in your form or it can be mail as a cheque at your notified address.
in case of certificates held with central depository company:
Engro Rupiya Certificates will be listed on KSE thus for investor maintaining their certificates with the Central Depository Company (CDC), the certificate can be sold on the exchange through their stock broker.
or
JS Global Capital Limited (formerly Jahangir Siddiqui Capital Markets Limited) will act as Market Maker for the issue. The role of the market maker will be to offer bid & ask quotes for the TFCs at a spread of 0.50% and 1.50% in yield, or equivalent price terms, for marketable or non-marketable lots respectively. Price will be determined by market maker in light of prevailing liquidity, interest rates and credit risk on the issuer. Thus the certificates can be encashed from the market maker at their bid price.
in case of physical certificates:
You can either:
a) Request for the redemption form our designated redemption branches and encash the certificate.
MCB and SCB are our redemption partners.
or
b) Redeem the investment from Engro in case of physical certificates.
the product
Key features of the product
- Fixed Profit rate of 14.5% per year payable every 6 months for a tenor of 3 years
- Minimum investment of Rs. 25,000 with increments of Rs. 5,000
- Profit earned from the first day of investment
- Profit deposited directly into your bank account for added convenience
- Rated “AA” which denotes very high credit quality
- Free pickup of application form right from your doorstep
- No minimum holding period so investments can be encashed anytime subject to service charges of 2% on the investment balance for encashments before completion of 3 years
- Available for purchase till January 15, 2011. Multiple applications are allowed
Profit Payments
Profit for an investment of Rs. 1,000,000 is illustrated in the table below:- Zakat is exempted for non-Muslims and for applicants who submit Zakat Affidavit
- Withholding tax is not applicable on investments below Rs. 150,000
Our Partners
- Standard Chartered
- MCB Bank Ltd.
- NIB Bank
- Bank-Alfalah
- Allied Bank Limited
- Bank Al Habib
- United Bank Limited
- Habib Bank Limited
- JSBL
- Citibank
- Askari Bank
- IGI
- BMA Financials
- UBL Funds Managers
- TCS
How Do I Purchase Engro Rupiya?
To purchase the Engro Rupiya Certificate you need to submit the completed subscription form , with a copy of your NIC and investment amount in the form of pay order, demand draft or cheque and submit it to our partner branches. With a minimum amount as low as Rs.25000, you can purchase the Certificate in denominations of Rs.5000, (Rs.30,000, Rs.35,000 so on)subscription form:
a) download the following subscription
b) request for the form from any of our partner banks’ branches near you
to deposit your investment you could either
a) Visit the branches of any of our partners’ and submit the subscription form with your cheque/demand draft/pay order
or
b) Contact our Call center (Number) return the completed form with your cheque, demand draft or pay order to our door delivery staff, who will deliver it to Engro.
quick and easy free pick up
At Engro our investors’ convenience is our priority! With the Engro Rupiya Certificate you have the comfort of investing right from your door step. Call us at our UAN (111-Rupiya) 111-787-492 and we will collect your subscription form, NIC copy and pay order, demand draft or cheque from your residence.
how do i receive my profit:
No ques, no wait! It’s your profit and you choose how to receive it!
The profit on your certificate can be transferred to directly to the bank account mentioned in your form or it can be mail as a cheque at your notified address.
How Do I Encash My Engro Rupiya Certificate?
An Engro we understand saving is a difficult decision hence we offer the early encashment option through which you can choose to encash your certificate any time.in case of certificates held with central depository company:
Engro Rupiya Certificates will be listed on KSE thus for investor maintaining their certificates with the Central Depository Company (CDC), the certificate can be sold on the exchange through their stock broker.
or
JS Global Capital Limited (formerly Jahangir Siddiqui Capital Markets Limited) will act as Market Maker for the issue. The role of the market maker will be to offer bid & ask quotes for the TFCs at a spread of 0.50% and 1.50% in yield, or equivalent price terms, for marketable or non-marketable lots respectively. Price will be determined by market maker in light of prevailing liquidity, interest rates and credit risk on the issuer. Thus the certificates can be encashed from the market maker at their bid price.
in case of physical certificates:
You can either:
a) Request for the redemption form our designated redemption branches and encash the certificate.
MCB and SCB are our redemption partners.
or
b) Redeem the investment from Engro in case of physical certificates.
engro business
Engro stands for “energy for growth”
Engro, has a legacy of sustained growth, accepting new challenges and fulfilling promises. With a diverse range of businesses, ranging from fertilizers to dairy products, business solutions to PVC resin, power generation to commodity trade, we have become the premier Pakistani enterprise with a global reach. Today, Engro is one the largest business conglomerates in Pakistan with an ambition to reach out and make a difference.
The Company’s expansion plans include the world’s largest single train urea complex, which is being set up with an estimated cost of US$ 1.05 billion, and is on track for completion by mid 2010.
After the success of our dairy products, to which our customers testify, Engro Foods now plans to venture beyond the dairy sector. Engro Foods’ vision is “Elevating Consumer Delight Worldwide” and the Company aims to generate a significant portion of its revenue from foreign operations.
Types of TFCs:
There are three contractually related parties involved in a TFC issue: the issuer (the borrower), the investors (the lenders), and the trustee. The trustee, typically a financial institution, is appointed by the issuer to protect the contractual rights and interests of investors at all times.
Our help desk: 021 111-787-492
Or
Visit our website: www.engrorupiya.com
Or
E-mail us at: rupiya@engro.com
Or
Contact any of Our Partners
Zakat is deductible in case of Engro Rupiya Certificate is held by Muslim citizens of Pakistan, except where a statutory declaration of exemption is filed, and in case of certain non-corporate entities such as Trusts, Funds (subject to being qualified for non-deduction of Zakat in terms of the Zakat and Ushr Ordinance, 1980) etc. Zakat shall be deducted at the time of redemption of the principal amount of the Engro Rupiya Certificate or on the market value based on the closing rate on the KSE on the first day of Ramzan, whichever is lower, at the rate of 2.50% on such dates as the concerned Engro Rupiya Certificate becomes due for redemption in a Zakat year. However if you sign a non-deduction certificate the same will be deducted.
Income Tax
Any income derived from the Engro Rupiya Certificate shall be subject to income tax as per the Income Tax Ordinance, 2001. According to this Ordinance, the tax shall be deducted @ 10% of the gross amount of profit paid as per the First Schedule, Part 3, Division 1, Para (a), and shall be deemed to be the final discharge of tax liability on the profit arising to a tax payer other than a company, under subsection 3 of Section 151 of the Income Tax Ordinance, 2001.
ECL is required to withhold tax, currently at the rate of 10%, from profit payments to all investors except companies and resident individuals whose investment amount is up to PKR 150,000 under Clause 59, part (IV), Second Schedule of Income Ordinance 2001.
Capital Gains Tax
As applicable by law at the time of sale of TFCs
Capital Value Tax & Withholding Tax on Sale/Purchase of TFCs
Pursuant to the provisions of Section 233A of the Income Tax Ordinance, 2001 & Capital Value Tax (Finance Act 1989) the following charges are applicable on sale/purchase of securities: 0.02% Capital Value Tax (“CVT”) will be charged on purchase of all modarba certificates and instruments of redeemable capital as defined in the Companies Ordinance, 1984
Engro Fertilizers Limited
A wholly owned subsidiary of Engro, with a vision to provide balanced crop nutrition and an increased yield in crop cultivation. The company markets primary and secondary fertilizers like Engro Urea, Engro DAP, Engro Zorawar, Engro Zarkhez and Zingro. Additionally, the company sells phosphate fertilizers for balanced fertility and improved farm yields. Engro’s share of Pakistan’s phosphates market mirrors or exceeds its urea market share.The Company’s expansion plans include the world’s largest single train urea complex, which is being set up with an estimated cost of US$ 1.05 billion, and is on track for completion by mid 2010.
Engro Foods Limited
Engro Foods Limited was established as a fully owned subsidiary of Engro in 2004. Using dairy as a stepping stone to enter into the food, Engro Foods has established itself as the top manufacturer of quality brands like, Olper’s, Olwell, Tarang, Omore and Owsum.After the success of our dairy products, to which our customers testify, Engro Foods now plans to venture beyond the dairy sector. Engro Foods’ vision is “Elevating Consumer Delight Worldwide” and the Company aims to generate a significant portion of its revenue from foreign operations.
Engro Polymer and Chemicals Limited
Engro Polymer & Chemicals Limited, a 56% owned subsidiary, is Pakistan’s leading manufacturer and marketer of PVC (polyvinyl chloride) resin with an annual production of over 150,000 tons The Company markets its products under the brand name of SABZ. Following recent expansion, the Company now has an integrated facility with the capability to manufacture EDC, VCM, Chlorine and Caustic soda.Engro Powergen Limited
With a vision to improve the staggering power crisis, Engro Powergen was incorporated in 2008 to develop and secure feasible power projects in Pakistan. It has now successfully partnered with the Government of Pakistan to tap into the vast resources of the Thar Coal Field to bridge the energy gap.Engro EXIMP Private Limited
With a vision to expand in to new and profitable trading avenues Engro EXIMP Private Limited was established in 2003. A wholly owned subsidiary of Engro, Engro EXIMP, which trades in commodity fertilizers DAP, MAP, MOP and SOP, and micro-nutrients like Zinc Sulphate. It has now established a growing basmati rice business.Engro Vopak Terminal Limited
A breakthrough in chemical and LPG storage, Engro Vopak Terminal Limited, is a joint venture of Royal Vopak of the Netherlands and Engro. EngroVopak offers storage and handling solutions for liquid and gaseous chemicals, oil products, petrochemicals, bio-fuels, vegetable oils and Liquefied Natural Gas (LNG).AVANCEON Limited
Avanceon Limited is a leading global automation business which provides premiere process management and control solutions. Avanceon Limited has subsidiaries operating in the UAE and the United Statesknowledge center
FAQs
1. What is a TFC?
A Term Finance Certificate (TFC) is a corporate debt instrument issued by companies in Pakistan to generate short and medium-term funds.Types of TFCs:
- The TFCs issued to date include both fixed and floating rate instruments, although issuers have lately tended to favor the floating rate variant.
- The coupon rate on floating rate TFCs is set at a risk-free benchmark rate plus a risk spread to reflect the relative risk of the instrument. The risk-free benchmark is typically the SBP’s discount rate, or the auction yield on the Pakistan Investment Bond (PIB) of equivalent maturity.
- Floating rate TFCs may impose caps and floors on the coupon payments.
- Some TFCs may have embedded call and put options.
- A Call option is an option to buy a TFC at a specific price on or before a certain date. In this way, Call options are like security deposits.
- Put options are options to sell a TFC at a specific price on or before a certain date. In this way, Put options are like insurance policies
There are three contractually related parties involved in a TFC issue: the issuer (the borrower), the investors (the lenders), and the trustee. The trustee, typically a financial institution, is appointed by the issuer to protect the contractual rights and interests of investors at all times.
2. Why is the profit from TFC higher than banks?
TFCs allow companies to raise funds at a lower rate compared to banks, despite paying a higher profit rate to their investors. Companies benefit by paying a lower cost of borrowing.3. How are profit payments made?
Profit payments are made semi annually through one of the following modes:- Direct Bank Account deposit
- Cheque
- Par Order
- Demand Draft
4. Who should I contact for queries related to allotment and profit payments?
For any queries regarding Engro Rupiya please contact:Our help desk: 021 111-787-492
Or
Visit our website: www.engrorupiya.com
Or
E-mail us at: rupiya@engro.com
Or
Contact any of Our Partners
5. Can I invest in Engro Rupiya at present?
In order to invest in Engro Rupiya, you should match our eligibility criteria:- Pakistani citizens resident in or outside Pakistan or Persons holding two nationalities including Pakistani nationality;
- Foreign Nationals either, living in or outside Pakistan
- Companies, bodies corporate or other legal entities incorporated or established in or outside Pakistan (to the extent permitted by their constitutive documents and existing regulations, as the case may be);
- Mutual Funds, Provident/Pension/Gratuity funds/trusts, (subject to the terms of the Trust Deed and existing regulations); and
- Branches in Pakistan of companies and bodies corporate incorporated outside Pakistan.
6. What are the profit payment due dates for Engro Rupiya?
7. What is the maturity period of the Engro Rupiya? When can I redeem it?
The Maturity period for Engro Rupiya is 3 years. It is a redeemable instrument and you can easily encash your investment from the date of purchase, to anytime during its maturity period. In case of redemption a 2 percent penalty will be charged on the investment amount only.8. How can I get quotes / market price of the NCDs on the NSE website?
You can log on to KSE website, www.kse.com.pk, where Engro Rupiya is listed on the cash segment of KSE or log on to our website (web address) and get quotes on Engro Rupiya.9. What is the purpose of the subscription letter?
After the completion of every financial year (i.e. a period of 12 months commencing on April 1 of a year and ending on March 31 of the succeeding year), Engro will send to the Certificate holders a profit accrual statement showing computation of profit accruing in the financial year, mainly for the reference of the certificate holders for tax purpose. Profit on Engro Rupiya shall be paid on respective due dates as mentioned in Q.2 above, to those Engro Rupiya holders whose names appear in the register of certificate holders on the Record Date.10. Will the interest on Engro Rupiya be taxable and subject to Zakat deduction?
Deduction of ZakatZakat is deductible in case of Engro Rupiya Certificate is held by Muslim citizens of Pakistan, except where a statutory declaration of exemption is filed, and in case of certain non-corporate entities such as Trusts, Funds (subject to being qualified for non-deduction of Zakat in terms of the Zakat and Ushr Ordinance, 1980) etc. Zakat shall be deducted at the time of redemption of the principal amount of the Engro Rupiya Certificate or on the market value based on the closing rate on the KSE on the first day of Ramzan, whichever is lower, at the rate of 2.50% on such dates as the concerned Engro Rupiya Certificate becomes due for redemption in a Zakat year. However if you sign a non-deduction certificate the same will be deducted.
Income Tax
Any income derived from the Engro Rupiya Certificate shall be subject to income tax as per the Income Tax Ordinance, 2001. According to this Ordinance, the tax shall be deducted @ 10% of the gross amount of profit paid as per the First Schedule, Part 3, Division 1, Para (a), and shall be deemed to be the final discharge of tax liability on the profit arising to a tax payer other than a company, under subsection 3 of Section 151 of the Income Tax Ordinance, 2001.
ECL is required to withhold tax, currently at the rate of 10%, from profit payments to all investors except companies and resident individuals whose investment amount is up to PKR 150,000 under Clause 59, part (IV), Second Schedule of Income Ordinance 2001.
11. Other information?
Since the Engro Rupiya certificate will be a tradable instrument on the Karachi Stock Exchange for all secondary transactions the following will hold:Capital Gains Tax
As applicable by law at the time of sale of TFCs
Capital Value Tax & Withholding Tax on Sale/Purchase of TFCs
Pursuant to the provisions of Section 233A of the Income Tax Ordinance, 2001 & Capital Value Tax (Finance Act 1989) the following charges are applicable on sale/purchase of securities: 0.02% Capital Value Tax (“CVT”) will be charged on purchase of all modarba certificates and instruments of redeemable capital as defined in the Companies Ordinance, 1984
- 0.01% Withholding Tax (“WHT”) will be charged on sale of all shares, modaraba certificates, and instruments of redeemable capital as defined in the Companies Ordinance, 1984.
Application Forms and Prospectus
