HBL gross spread stands at 59%

Gross spread of the HBL stood at 59 percent in 1QCY11 versus 56 percent in 1QCY10 due to increase in earning assets and yield on the same.

Average yield on earnings assets stood at 10.24 percent in 1QCY11 versus 9.93 percent in 1QCY10. Average yield on interest bearing liabilities fell by 19 bps to 4.58 percent in 1QCY11 mainly attributable to 25 percent growth in current account deposits.

Consequently, average spread stayed at 5.66 percent in 1QCY11, depicting an increase of 51 bps.

From: Daily Times

Global share float depends on investor confidence

The government’s plan to list shares of Pakistani companies on the London Stock Exchange depends on the success or failure of the upcoming exchangeable bonds of the Oil and Gas Development Company (OGDCL), which will test the interest of international investors in Pakistani companies.

The Privatisation Commission intends to float Global Depository Receipts (GDRs) – a term used for listing of companies’ shares outside the country – of Habib Bank Limited (HBL), National Bank of Pakistan (NBP) and Kot Addu Power Company (Kapco) in the London market.

From: Tribune

Habib Bank IPO, GDR approved

Habib Bank president Zakir Mahmood said on Monday the government of Pakistan has given green light for the issuance of IPO and GDR of the bank, authorizing the Privatization Commission to set a deadline and work out details.

Addressing a press conference on the launch of new corporate identity of the bank, he said the bank had already applied to different regulatory authorities of foreign countries to allow it to start business.

He said HBL has plans to extend its presence in key international markets, which include the United Kingdom, UAE, South and Central Asia, Africa and the Far East.

Banks major attraction for foreign portfolio investors

The growing foreign interest in Pakistan’s developing economy, particularly in areas like banking and capital market, is well reflected in the Karachi Stock Exchange, which has been rising for the last couple of weeks.

This is primarily evident from the increased inflow of foreign portfolio investment into Special Convertible Rupee Account (SCRA) managed by the State Bank of Pakistan.

SBP figures pointed out that during the week ended on October 12, 2006, a massive inflow of US$13.5 million was recorded in the country’s stock markets.

HBL gets $509m IFC funding

International Finance Corporation (IFC), a subsidiary of World Bank announced on Monday that it has arranged $509 million long-term funding for Habib Bank Limited.

IFC board of directors had already approved a “broader US Dollar 120 million investment package” and this amount is part of that approved amount. The $120 million amount of IFC will be used for equity investment and trade finance facilities.

A Press note of the IFC, issued on Monday said the proceeds of loan will be used “to expand capital base and provide loans having long maturities to clients,” of HBL. IFC will work with HBL on a range of technical assistance projects to:

Governmentt plans foreign share listings

Pakistan is considering four more firms, including three banks, for foreign listings through the issuance of global depository receipts in the current fiscal year ending June 30 2007, a senior government official said on Thursday.

The government has already announced plans to list the Oil and Gas Development Co. Ltd. (OGDCL) on the London Stock Exchange by December.

Last week private MCB Bank Ltd, the country’s second largest listed bank, also announced it was planning a GDR sale in London worth up to $150 million. The pricing of the issue is expected on October 9.