Karachi: Engro Corporation Limited Wednesday said second issue of Engro Rupiya Certificates ERC reached target amount of Rs 2 billion along with additional Rs 750 million by exercising Green Shoe option. This follows successful launch of ERC’s first issue in October 2010, which also achieved target before announced IPO closing period.
ERC provided investors opportunity to invest in one of largest conglomerates of Pakistan and earn fixed rate of 14.5% per annum return over 3 year investment period. It was rated ‘AA’ by PECRA and offered investors a high degree of convenience as Engro also provided unique service for its customers, enabling certificate holders to conduct transactions and receive profit payments at home, says a press release.
This initiative is part of Engro’s long term strategy to develop Retail Corporate Debt market in Pakistan which did not exist before launch of ERC, unlike in most developed and developing economies. Development of this market will increase investment opportunities for retail investors while allowing corporate to raise financing at competitive rates due to direct interface with general public.
In order to ensure widest outreach and convenience for investors, Engro Corp. has partnered with 17 institutions, including banks, other financial organizations, to facilitate investors in purchasing ERCs.’