. .



June 28 - July 04,1999

SG launches its sixth Euro convertible bond issue

Scor has appointed SG to lead manage its Convertible Bond Issue Redeemable into New or Existing Shares for an initial amount of EUR 203 million.

SG designed and developed the concept of convertible bonds redeemable in new or existing shares, and has lead-managed seven of the eight such issues made to date, giving it 93% market share in terms of amounts placed.

With this new operation SG consolidates its position as world leader in convertible bond issues, with over EUR 6.1 billion raised for its clients since the beginning of the year.

SITE Association of Industry

Pervez Ihsan, Vice Chairman, SITE Association of Industry in a press statement has vehemently opposed the General Circular published in Dawn and Nawa-i-Waqt dated June 21, 1999 inviting objections on the 200% increased in Trade Licence Fee. He added that SITE industrialists have expressed grave anguish and concern on the proposed increase in Trade Licence Fee since this arbitrary decision without taking into confidence industrial and business community will have far reaching adverse effect especially at a time when industries as a result of recession and non-provision of infra-structural facilities have been closed down upto 40%. This decision will cripple the SITE industries already rearing the brunt of heavy taxation by paying more than 50 Federal, Provincial and Local taxes.

Passengers Voice Overwhelming Preference For Boeing 777

A survey of nearly 6,000 European airline passengers found that the Boeing 777 twin-aisle jetliner was preferred by more than three out of four passengers who have flown aboard both the 777 and the Airbus A330/A340 airplanes.

The preference for the Boeing 777 held true for passengers flying in all three classes of service — first class, business class and economy.

The survey was conducted by six airlines flying long-range flights to and from Europe. Five of the participating airlines were European; the sixth a Middle Eastern airline with service to Europe. In each case, the survey was handed out by the sponsoring airline and contained only the identifying logo of that airline. Passengers were selected at random, using standard statistical procedures in order to ensure the validity of the results. Responses from passengers with potential conflicts of interest — those who worked for an airline, a manufacturer or a major supplier, for example - were discarded, a standard practice in market research.

Pak-Libya Holding Co.

The 53rd meeting of the Board of Directors of Pak Libya Holding Company (Pvt.) Limited was held at its registered Head Office at Karachi. The meeting was chaired by Dr. Khaled F. Zentuti, Chairman, Pak Libya and was attended among others by Mr. Abu Shamim M. Ariff, Secretary Industries, Government of Pakistan, Mr. Negmeddin Hemali Mukhtar, Director, Mr. Zaigham Mahmood Rizvi, Managing Director and Mr. Ramadan A Haggiagi, Deputy Managing Director.

Pak-Libya Holding Company (Pvt.) Limited is a joint venture development finance institution that was established in 1978 with a paid-up capital of Rs. 1000 million, following an Inter-Governmental Agreement between Government of Pakistan & Libya. It operates within the framework of the banking laws of Pakistan under the supervision of the Ministry of Finance and the State Bank of Pakistan. Pak-Libya commenced its business operations in October 1980 with a subscribed equity capital of Rs. 1000 million equally contributed by the two Governments. The authorized and paid-up capital of the Company as on December 31, 1998 stood at Rs. 4000 million and Rs. 2102.8 million respectively while the shareholder's equity stood at Rs. 2139.9 million as on that date.

The Company is engaged in various financing activities in the areas of Project Financing, Investment Banking, Merchant Banking, Treasury and Capital Market Operations. Pak-Libya's financing operations covers both fund-based and non-fund based activities.

The Board reviewed the activities of the Company and expressed its satisfaction on the overall performance of the Company. The Board also cleared financial assistance of Rs. 110.00 million which included giving approval for a car assembly cum manufacturing plant.

Since its inception, Pak-Libya has made tangible contribution towards financing of industrial development in Pakistan. Financial assistance has since been provided to a number of projects, particularly in the private sector, pertaining to a cross section of important industrial sectors including Chemicals, Pharmaceuticals, Fertilizers, Engineering Goods, Oil & Gas, Energy, Textile, Financial Sector, Services etc. Inclusive of gross sanctions made by Pak-Libya during 1998, the Company has so far make gross cumulative sanctions of Rs. 9.4 billion (including both local and foreign currency investments) to over 300 projects. Of the cumulative gross sanctions, a sum of Rs. 2.4 billion has since been fully repaid. Recovery position of the Company has also remained satisfactory over the years. As on December 31, 1998, Pak-Libya has since recovered a total cumulative amount of Rs. 4960.5 million. The Company has also been declaring handsome dividends since its inception. Inclusive of cash dividend of Rs. 136 million declared by Pak-Libya during 1998, the total cumulative dividends declared by the Company since inception to-date amount to Rs. 1923.9 million. Of these total cumulative dividends, a sum of Rs. 1259.5 million is in the form of cash dividends which is about 125% of the original subscribed capital. Despite the fact that Pak-Libya has been paying handsome dividends to its shareholders since its inception, its initial paid-up capital of Rs. 1000 million has since improved to Rs. 2102.8 million as on December 31, 1998.

In addition to pursuing its investment financing activities coupled with money market, treasury and capital market operations, the Company has been able to further diversify its operations into more innovative and broad based activities. These intended enhanced fund mobilization activities, co-sponsorship of a Software Training and Development Institute, establishment of a Real Estate Development Company and strengthening of its Corporate Advisory Services. Pak-Libya has since been mandated to arrange financing of US$ 1.2 billion for establishment of Pak-Iran Oil Refinery in Pakistan.

The Board also appreciated the efforts of the Company in endeavouring to mobilize long-term resources for industrial financing and development by way of launching the first tranche of Rs. 500 million of Pak Libya's first TFC issue having shelf registration of Rs. 1000 million, for which necessary formalities are in progress. The Board was also appreciative of the efforts made by Pak Libya in trying to further strengthening the secondary market in the country by way of floating a Fixed Income Securities Mutual Fund in the name of Munafa Securities Mutual Fund, for which necessary modalities are being worked out.

Recognizing Pak-Libya's sound financial health, credit worthiness in the money and capital market and management's efforts in streamlining and improving the management information system and internal control procedures, DCR-VIS, a Rating Agency established as a joint venture with the Internationally known Rating Agency, Duff and Phelps of USA has recently assigned the following credit rating to Pak-Libya.

Long Term Entity Rating A+

Short Term Entity Rating D1

DCR-VIS Credit Rating Company Limited has recently assigned Credit Rating of AA-(Double A. Minus) to Pak-Libya's proposed TFC Issue of Rs. 500 million.

During 1998, Pak-Libya has further diversified and broad based its operational activities by encouraging investment in Islamic modes of financing particularly through Musharika. In association with Vital Information Services, Pak-Libya has recently arranged a consortium of six financial institutions to finance Rs. 500 million to four well known corporate clients under the recently developed M-VIS (Musharika Variable Income Securities).

JEROEN VAN DER VEER VISITING PAKISTAN

Mr. Jeroen Van Der Veer, Managing Director of the Royal Dutch Petroleum: Company and Group Managing Director of the Royal Dutch/Shell Group, is visiting Pakistan from 22~ 25* June, 1999. During his visit he will meet the Prime Minister and other important government officials including the Chief Ministers of Balochistan and Punjab.

The opportunity for overseas experience was a major factor in Jeroen Van Der Veer deciding to join Shell after military service following a degree in mechanical engineering. Later he studied economics.

He joined the Committee of Managing Directors from the Shell Chemical Company in the USA, where he was President and Chief Executive. In the USA, he vfas very involved in the transformation of the Shell Chemical Co (a part of Shell Oil Company) and he sponsored the reward and recognition initiative. This reflects his strongly held view- that it is important to allow people to contribute to Shell in their own way, their energies being directed in part by means of a reward system.

The management of change has been a constant feature of his postings, especially at Shell Nederland, where he was Managing Director and oversaw the investment of US$ 2 billion in the 'Per Plus' project at Pemis-one of the largest of Shell's operations world-wide and including both refining and chemicals manufacture.

LEGO Mania at The Point!

Summer holidays are the relief for kids and the havoc for parents. Children roaming about at home with their usual complaints of "I'm bored - I want lo do something.." and you suggest a million things like "Why don't you paint? Draw? (Scowl) Run around in the garden outside? ('Too hot')" Nothing can tempt enough to entertain. It's this hopeless list of suggestions, which are the same old tiresome stuff.

Seems like somebody at Cupola's The Point read your mind and decided to give you a break. They announced the LEGO Competition, a joint effort between Wrapables of The Point, and General Traders (Pvt) Ltd. the official distributors of LEGO in Pakistan guaranteed to give your child the excitement that was otherwise missing in the summer vacations. No worries about the ages - the competition has various age group sections: 35 yrs, 6-9, and 10+ yrs and will be held every Friday at The Point.

The first of the series of these Friday competitions was held last week and generated tremendous enthusiasm and energy amongst the kids. Festivities began from noon and went on till late evening - accommodating different age groups with corresponding competitions. The younger age group was given the LEGO DUPLO blocks, bigger pieces that are easier to build with and handle. Whereas, the older ones were given the more complicated LEGO bricks and models which required greater finesse and creativity.

Most of the children came in from the Kids University summer camp, an institution owned and run by Khushbakht Shujaat, a renowned TV personality. Children of all ages participated in the colourful and lively competition and were clearly thrilled to be there. "I think this is a fantastic activity for the children. We had promised them a field trip but when the time arrived - we could not decide where to take them. This is a brilliant opportunity for the children as not only do they have a safe and secure environment - the entire process is educational as well," said Ms. Shujaat. "I am so glad Cupola created this opportunity for our children. I am sure that they have learnt a lot today and I can see that it has brought out a tremendous amount of creativity in them," she added.

Children were seated on mats on the floor in Color4Kids and another room where they were given a pile of LEGO pieces to assemble in any way they desired. Thoroughly enjoying themselves, they sat comfortable and built castles, spaceships, robots, cathouses..anything that caught their fancy. After an hour they were asked to stop 'building' in order for their creations to be assessed by the judges. Adnan Asdar, a well-known architect, Mr. Raza Hamid, of Cupola, and Mrs. Nosheen Yaqub, and Mr. Waadullah Masood (representatives of General Traders) judged the creations as they chatted with the children, asking them what their LEGO creation meant lo them. Prizes were won by Mustafa Hassan Khan, Taha Khalid, Saad Majeed, Osama Rabbani, Zain Saud, Sulaim Zakir Nansey, Ayesha Ghani, Hassan Khan and Faiz Zaki. All the participants and their families were provided with complimentary drinks by Pepsi.

The Point also celebrated Father's Day on June 19th (celebrated a day earlier due to World Cup), by inviting fathers over to build some LEGO models. This was a unique event as this day is generally ignored and hardly ever given much importance. There were several enthusiastic dads all set to build innovative models and win a prize. Sitting cross-legged on the floor and concentrating on their 'work', the fathers enjoyed this trip back to childhood with spirit! The most creative father was Mehmood Siddiqui who won his wife a beautiful vase from Wrapables.