United Bank Limited's Investment Banking Group ("UBL IBG") is one of the largest corporate finance houses in Pakistan and has been conferred the largest Corporate Finance House award for three out of the last five years by the CFA Association of Pakistan.
UBL IBG continuously endeavours to provide innovative and unique solutions to its clients focusing on three specialist investment banking areas: (i) Debt Capital Markets and Syndications, (ii) Equity and Corporate Advisory, and (iii) Project and Structured Finance.
UBL IBG recently closed buy-side advisory to Creative Energy Resources for acquisition of a strategic stake in Uch Power (Pvt.) Limited.
Our investment banking services are fee-based and also contribute to the growth in corporate banking, Islamic and financial institutional asset book. Our team consists of 16 specialists, supported by over 50 relationship managers across six locations in Pakistan. Our relationships with market participants such as institutions, pension and mutual funds, trusts and private investors allow us to distribute capital issues in the market efficiently and expeditiously.
Hence, we have the ability to tap the retail as well as institutional investor base, both locally as well as internationally on account of our strong global presence. Besides, a strong domestic footprint comprising of 1096 branches all over Pakistan, UBL has representation in 10 countries world-wide through 22 offices, including USA, UK, and Switzerland. In addition, having our principal sponsors based in Abu Dhabi, we have sufficient access to foreign institutional investors based out of UAE, interested in making equity and/or debt investments in Pakistan.
During the last three years, UBL IBG has led the structuring and execution of transactions with an aggregate value in excess of Rs 373 billion, including 23 transactions in 2007 alone - valued at Rs 156.5 billion. These include such leading transactions as the Rs 24.6 billion non-recourse project financing of Nishat IPPs and syndicated local currency financing of Rs 18.3 billion for the world's largest single-train Urea plant of Engro Chemical Pakistan Limited, also the largest industrial investment in the country's history by a Pakistani company amongst others.
UBL IBG is the Joint Advisor & Lead Arranger for six (totalling to approx 1,300 MW of generation capacity) out of the eight project financing transactions of Independent Power Plants ("IPPs") to achieve financial closure under Pakistan's 2002 Power Policy regime.
Our franchise extends beyond the domestic frontiers as evidenced by a number of advisory mandates UBL IBG has managed to secure lately. UBL IBG successfully closed buy-side advisory to Creative Energy Resources for acquisition of a strategic stake in Uch Power (Pvt.) Limited in March 2008. Moreover, UBL IBG is also the exclusive Financial Advisor to TransAsia Refinery Limited, a greenfield refinery project based on relocated and certain new-built components, promoted by the Al-Ghurair Group, UAE.
• Debt Capital Markets and Syndications ("DCMS"). The Debt Capital Markets & Syndications team is a leader in raising debt financing for clients in the domestic loan and bond markets. DCMS works in close coordination with corporates, financial institutions, project companies, and public sector enterprises to understand their financing needs for providing a tailor made innovative financial solution.
We provide these services to companies with significant funding requirements that cannot be met through a single lender, either due to per party limits or risk diversification considerations.
Additionally, the DCMS team boasts exceptional relationships with other banks, financial institutions, asset management companies, provident & gratuity funds of public and private sector companies all of which are active investors in various debt issues arranged by the DCMS team. DCMS works with issuers to find innovative solutions and is recognised as a leading house for debt issuance.
UBL REMAINS COMMITTED TO THE INTRODUCTION OF INNOVATIVE DEBT CAPITAL MARKET PRODUCTS TO BETTER SUIT ITS CLIENTS' NEEDS BY OFFERING THE FOLLOWING SERVICES:
-- Arranging, managing and underwriting bond issues for both private placements and public offers and ensuring compliance with regulatory requirements.
-- Advising its clients on type of instrument (senior, subordinated or hybrid of instruments), tenor, collateral support structure, pricing, currency and timing of issue.
-- Extensive placement capabilities and secondary market support
UBL DCMS offers various financial solutions like Syndicated Term Loans, Islamic Financing Solutions like Sukuks, Securitization, Listed and Privately Placed TFCs, and Commercial Papers. Over the course of time, the business has been successful in consolidating and widening its core distribution network enabling it to optimise the Bank's balance sheet usage. In 2007, DCMS completed twelve transactions with a cumulative deal size of over Rs 65 billion.
-- Equity and Corporate Advisory ("E&CA")
UBL E&CA acted as the Buy Side Advisor and Arrangement Agent for the Largest Leveraged Buyout of Pak Arab Fertiliser by Fatima Group of Rs 14.7 billion, which bagged the "Transaction of the Year 04-05" award by CFA
This segment focuses on sectors with potential for consolidation and mergers, privatization transactions, as well as highly leveraged companies in cyclical industries, start-ups, growth companies and others that have substantial capital requirements. Equity as a source of finance has become an attractive proposition.
This is particularly the case for entrepreneurs setting up new enterprises, as well as those envisioning expansion and/or existing shareholders wanting to offload their holding through an Initial Public Offering ("IPO") or secondary market offering. Being a leading commercial bank in Pakistan, we actively provide and arrange for private equity financing to start-up as well as established companies looking for expansion capital.
UBL E&CA acted as the Buy Side Advisor and Arrangement Agent for the Largest Leveraged Buyout of Pak Arab Fertiliser by Fatima Group of Rs 14.7 billion, which bagged the "Transaction of the Year 04-05" award by CFA. In 2007, UBL E&CA was Joint Financial Advisor & Arranger, as well as co-lead Underwriter for the Rights Issue of The Bank of Khyber for Rs 2.5 billion. In addition, we acted as the Sole Advisor for listing Sitara Peroxide's ordinary shares to the tune of Rs 550 million.. We are also widely credited with originating innovative transactions exemplified by Pakistan's First Listed Floating Rate Preferred Share Issue for Masood Textile Mills Limited amounting Rs 600 million, as the Financial Advisor & Arranger.
Earlier this year we acted as the sole Advisor and Arranger to the over Rs 5 billion rights issue of Fauji Cement Company Limited. In a short period of 2 years, UBL IBG has completed seven private equity transactions and its current portfolio comprises investments in the information technology and entertainment sector. As part of private equity services, we provide both, advisory and valuation services as well as capital for companies in the earliest stage of commercialisation, those exhibiting turnaround potential and ones seeking capital to accelerate their growth or secure a stable market share.
PROJECT AND STRUCTURED FINANCE ("P&SF"):
-- P&SF provides services in connection with greenfield projects, as well as expansion initiatives of highly leveraged entities that seek non- and/or limited-recourse financing options. The P&SF products that we offer include structured syndicated funding, supported by well developed legal and financial structures, aimed at optimising the allocation of risk for a given project. P&SF's particular focus lies with the infrastructure, refining, oil and gas, and independent power sectors. The P&SF business, over the year, has not only grown in abilities and credentials as manifested by the repeat cliental and increasingly complex transactions undertaken but also serves as an important contributor to fee earnings.
During 2007, P&SF was mandated on 9 transactions, out which 7 transactions valued at over Rs 64 billion were successfully closed. P&SF's primary focus was IPPs as it closed out debt arrangements for Sapphire Electric, Saif Power, Atlas Power and the Nishat IPPs. In addition, UBL is also the Agent Bank and L/C Issuing Bank for Sapphire Electric and Project Monitoring Bank for Saif Power, and Agent Bank for Nishat Group's 2 IPPs. Going forth, P&SF is expected to retain its focus on the energy and power sector, while also placing greater emphasis on project advisory services both domestic and off-shore.