Reflecting leadership through cutting edge and innovative solutions based on state-of-the-art technology
SHABBIR H. KAZMI, Special Correspondent
Apr 09 - 15, 2007
MCB Bank is one of the leading commercial banks in Pakistan, with an asset base of approximately US$ 5.3 billion and a deposit base of over US$ 4.3 billion. With a current market capitalization of over US$2.3 billion, MCB can be termed the second largest listed commercial bank at the Karachi Stock Exchange. It is also one of the most actively traded stocks at the local stock exchanges. The bank employs approximately 8,600 people and has a network of 959 branches, servicing thousands of institutional clients and 4.3 million account holders.
MCB is one of the leading banks of Pakistan with a deposit base of about Rs 230 billion and total assets of around Rs 300 billion. Incorporated in 1947, MCB soon earned the reputation of a solid and conservative financial institution managed by expatriate executives. In 1974 the bank was nationalized along with all other private sector banks but eventually privatized in 1991. Since privatization the bank has concentrated on growth through improving service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its non-performing loans via improved risk management processes.
Based on its market position, potential for growth, profitability and management quality, MCB has often received globally recognized awards. It has received the Euromoney Award for Excellence for the 'Best Bank in Pakistan' for six out of the past seven years, and the Asia Money Award for the 'Best Domestic Commercial Bank' for the last three years.
Recently MCB has successfully raised US$ 150 million, through the issue of about 8.6 million Global Depository Receipts (GDRs). Each GDR represented four underlying equity shares and the issue is listed at the London Stock Exchange. Each GDR was priced at US$ 17.40, equivalent to Rs 264 per equity share. The GDR was effectively priced at a 0.5% premium to 10-day VWAP and a 2.9% discount to last sale. Merrill Lynch International acted as Global Coordinator, Sole Book Runner and Sole Lead Manager for this issue, with KASB Securities acting as Financial Advisor to the MCB.
The landmark transaction represents the first GDR offering for a Pakistani issuer in over 10 years. Following the offering, MCB will be the first Pakistani company to be listed on the London Stock Exchange for trading on the Professional Securities Market. The GDR issue attracted demand in excess of US$ 700 million from over 50 investors globally.
The overwhelming response from the fund management community to the issue signified investors' confidence in the bank's management and highlighted its impressive performance metrics on a global scale. MCB Bank's GDR offering has been awarded the Best Pakistan Deal in Awards for Achievement-2006 by FinanceAsia, Asia's leading financial publishing company. FinanceAsia covers Asia's financial and capital markets and announces awards each year to defining deals coming from different countries. Deals selected for the award can be equity offerings, M&A deals, or bonds.
After thorough review of the performance MCB's Board of Directors reviewed the bank's performance for the year ended 31st December, 2006. It was decided to distribute 15% final dividend along with issue of 15% bonus shares. This was in addition to 60% interim dividends distributed during the year.
The modern, urbane architecture and intelligent design of MCB Tower reflects MCB's leadership in the banking sector, providing cutting edge, innovative solutions based on state-of-the-art technology. Towering 116 meters, with 29 levels and 3 basements, MCB Tower has been termed the tallest building in Pakistan.
Specialized secant piling work was undertaken to protect the adjacent buildings during the construction of the three basement levels and foundation. One of the most integrated safety and security features is 24 x 7 surveillance system, including smart card access to prevent unauthorized entry at any level.
The tower produces its own electricity using 1.2MW gas turbines backed up by two stand-by diesel generating sets. The heat recovery system ensures that the heat produced is used to operate the chillers of the central air conditioning system thereby achieving an unprecedented level of power/energy consumption.
State-of-the-art fire/smoke detection alarm and sprinklized suppression system is backed up by a central fire fighting system. Rooftop garden and gymnasium with unparalleled views of the city skyline is supported by six high speed elevators. These are fitted with a unique call system, which identifies, allocates and assigns each visitor to a particular elevator to optimize their wait and travel time.
2090 Sq.m. (2500 sq.yds.)
Total covered area
21,285 sq.m. (229,026 sq.ft.)
3 Basements + 29 floors