'Engro Rupiya Certificates' launched

Engro Corporation Limited on Thursday announced to launch of Engro Rupiya Certificates a savings option, which will provide investors an unprecedented 14.5 percent rate of return. Speaking at the launching ceremony, Ruhail Muhammed, CFO, Engro Corporation Limited highlighted, "The Engro Rupiya Certificate is a financial product in line with Engro's tradition of being pioneers in Pakistan's business arena, and aims to provide investors with an opportunity to be a part of Engro's vision and to save with a name investors can trust.
He said presently return on National Saving Scheme is not more then 13 percent and it would be very attractive product for the small investors. "The first Term Finance Certificate (TFC) to be launched by Engro Corp, this financial product offers profit payments twice in a year for a minimum amount of Rs 25,000, invested for a period of 3 years," he informed.
He said that although the product is for a period of three years but also offers investors the option to encash the certificates at any time, with the profit accumulated from the date of purchase to the date of encashment. In order to ensure the widest outreach and convenience for investors, Engro Corp has partnered with 15 institutions, including 11 banks and some other financial organisations, to facilitate investors in purchasing these certificates, Ruhail said.
"We understand the needs of investors and the limitations that they face, and Engro Rupiya provides a reliable and efficient avenue of investment within Pakistan," he added. He said that TFC is a corporate debt instrument, which will allow Engro to raise funds at a lower rate compared to banks, despite paying a higher profit rate to their investors.
Investors include Pakistani citizens, or a person of dual nationalities, of which one is Pakistani nationality; and even foreign nationals residing in Pakistan or abroad can invest in these TFCs. While other eligible investors include companies, Bodies Corporate or other legal entities incorporated or established in or outside Pakistan, Mutual Funds, Provident/Pension/Gratuity and Bodies Corporate incorporated outside Pakistan.
In case of redemption before maturity a two (2) percent penalty will be charged on the outstanding investment amount. However, profit will be paid from the date of purchase of the TFCs, he informed. He said that there are three contractually related parties involved in a TFC issue comprising 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 and in this TFCs Trustee is Engro Corporation.