PAK-OMAN INVESTMENT COMPANY

 Oct 31 - Nov 13, 2005

WHO WE ARE?

Pak Oman Investment Company (Pak-Oman) is a financial institution formed as a joint venture between the Government of Pakistan and the Sultanate of Oman. Subsequent to the visit of His Majesty, Sultan Qaboos to Pakistan in 2001, an agreement was signed by the two governments and in July 2001, the company was formally incorporated. Within the next six months, an extremely competent Board with a shared vision of bringing private sector culture and flexibility to company operations was drawn up with the equal representation from both sovereign shareholders.

CORE OPERATIONS

Apart from its emphasis on traditional financing activities, Pak Oman has established itself as a leading Investment Banking outfit. The Investment Banking Division prides itself in structuring innovative, tailor made and cost effective solutions for its customers in Pakistan as well as Oman. It has successfully executed a number of diversified mandates that include listed and privately placed Term Finance Certificate issues, syndicated term finance facilities, equity issues, balance sheet restructuring and unsecured/tradable Commercial Papers. In fact Pak Oman is the only institution that has successfully advised and arranged Commercial Paper issues for a number of eminent corporate customers.

Pak Oman has one of the most active treasuries in the market today. It is a fine pricing, high turnover and large volume player with average daily turnover in excess of PKR 1 billion. The treasury also actively trades listed corporate bond issues and currently has a portfolio in excess of PKR 1 billion raised from both primary and secondary offerings. It has been reappointed Primary Dealer by the State Bank of Pakistan in August 2004 - one of a select group and the only DFI to get this role. For a young institution, this is a significant triumph.

Pak Oman's strategy has been to develop inroads in areas currently neglected that provide great potential for growth and profitability. Projects in these areas also offer the opportunity to meet developmental objectives set out by the Sponsors. Pak Oman has established a dedicated Special Projects division to explore viable financing opportunities in the non-traditional sector with special emphasis on Baluchistan and Gwadar. In order to show our commitment to the economic development of the region, Pak Oman has participated in two mega infrastructure projects: the first involving supply of water to Gwadar (Mirani dam) and the second involving a road link between Gwadar and Karachi (Makran Coastal Highway).

JCR-VIS Credit Rating Company Limited has reaffirmed Pak Oman Investment Company Limited (POIC) entity ratings of 'AA+ (Double A Plus) for medium to long term and A-1+ (A One Plus) for the short term. The outlook on the medium to long term rating is 'stable'. Additionally, Pak Oman's corporate governance rating as assigned by the JCR-VIS Credit Rating Company is CGR-9, which denotes a 'very high level of corporate Governance'.

ADDITIONAL PLANS

In line with its development mandate, Pak Oman Investment Company has also initiated the process of setting up a country-wide microfinance bank. The Government of the Sultanate of Oman has agreed to invest $5.6 million in this venture. Mr. Ozair Hanafi, a senior executive, formerly associated with the Khushali Bank, has taken over as CEO of the Pak Oman Microfinance Bank.

Pak Oman is also in the process of setting up an Asset Management Company in partnership with the Oman National Investment Company (ONIC), Bank Muscat and the National Logistics Cell (NLC).

Pak Oman played a strategic role in the establishment of the Pakistan Textile City Limited. From preparation of the financial feasibility, to actual incorporation as Joint Stock Company, to selection of Board members, Pak Oman lent its complete support to the GoP to make this venture a success. This company aims to provide infrastructure and policy incentives to the textile industry, and stimulate its expansion and global competitiveness.

Pak Oman is the only joint-venture company / DFI to become a public limited company. This is a first step towards becoming a public listed company with eventual listings on both local and Omani stock exchanges.

In addition to offices in Karachi, Gwadar, Islamabad and Lahore, Pak Oman is the first Joint Venture Company to take the initiative of establishing an international office. Centrally located in the business district of Muscat, the branch will play an instrumental role in facilitating / promoting bilateral trade and investment between Sultanate of Oman and Pakistan.

Pak Oman, in the interest of social responsibility and good corporate citizenship, Pak Oman has also set up "Friends of Life", an internal unit dedicated to social/ welfare development and environment-friendly practices within and outside the organization.

From a fledgling concern, Pak Oman has come a long way in being recognized as a key player in the market.

For more information visit www.pakoman.com