Etihad Airway strikes $700m

5-year finance deal 

Lahore (Staff Reporter): A $700m landmark five-year finance deal struck by Etihad Airways Partners (EAP) to fund expansion was recognised by the prestigious market intelligence organisation International Financing Review (IFR) with the award for Emerging Europe Middle East and Africa Bond of the Year. The award, presented at a Gala Dinner in London, acknowledged the first joint financing deal of its kind in the airline industry in which lead advisor Goldman Sachs successfully raised equity from the markets for Etihad Airways, its subsidiary Etihad Airport Services and five of its strategic partners – airberlin, Air Serbia, Air Seychelles, Alitalia and Jet Airways – within Etihad Airways Partners.

The transaction was for a mixture of capital expenditure and investment in fleet, and refinancing depending on each business unit’s individual needs. The award recognised the confidence financial institutions showed in Etihad Airways’ unique business model that is focused on creating synergies between the businesses the airline has invested in.

Just days earlier, Etihad Airways was honoured in London by prominent financial publication Treasury Management International for implementing leading edge technology and developing innovative practices to streamline processes, creating a consistent robust and secure approach to payment systems, improving efficiency and enhancing corporate finance procedures.

The TMI 2015 Corporate Recognition Award for Innovation and Excellence was based on nominations by third parties and Etihad Airways was judged by peers across the finance world to have set industry leading global standards and best-in-class treasury innovation.

James Hogan, Etihad Airways’ President and Chief Executive Officer, said: “Both these awards demonstrate how Etihad Airways is focused on being the best at what it does in different areas of the business, whether it’s product and service or behind the scenes in developing innovative, robust processes to support our unique business growth model.

“Our Chief Financial Officer James Rigney and his team have clearly led the way in developing processes to strengthen the business, whether it is through tough negotiations to strike the best financial deal or creating original ways to take the business to new industry-leading heights and setting clear benchmarks in a competitive global environment.”

AMCs asked to comply with

regulatory requirements

ISLAMABAD (Staff Reporter): The Securities and Exchange Commission of Pakistan (SECP) has directed all asset management companies (AMCs) to comply with additional regulatory requirements for money market funds and income funds in line with the policy recommendations of International Organization of Securities Commissions (IOSCO) and international best practices. The SECP believes these regulatory reforms, which encompass the key principles of liquidity and credit risk, will ensure protection of unit holders’ interests and enhance the safety and soundness of the mutual funds industry during periods of market distress.

The AMCs are required to invest at least 10% net assets of money market funds in cash and T-bills that can be readily converted into cash to meet reasonably anticipated redemption requests. As per the new requirements, the AMCs shall conduct appropriate stress testing on the portfolios of Money Market and Income Funds based on certain hypothetical and/or historical events, such as rise in short-term interest rate, an increase in redemptions, a downgrade or series of downgrades in rating of portfolio securities, or credit event etc. The new stress testing requirement is intended to make mutual funds assess their liquidity position under adverse market conditions.

In addition to requiring mutual funds to invest in instruments awarded with specified external credit ratings, the SECP has required AMCs to carry out their own internal credit assessment using an internal rating process without sole reliance on external credit ratings to minimize credit risk. The AMCs shall also establish procedures to identify their clients who, based on past behavior and needs, may pose a large redemption threat to the funds under their management and make necessary liquidity arrangements to cater to such requests.

Mobicash partners with Chinese Online Shopping Portal

Lahore (Staff Reporter): Mobicash has partnered with Cheezmall.com, the Chinese Online Shopping Portal in Pakistan to facilitate online shopping for making payments for purchases made through cheezmall.com. The service enables customers with most convenient and secure online payment options. With the Chinese supplier base of more than 200,000 Cheezmall.com brings a new revolution of online shopping in Pakistan. Through these deals, products are available at extremely lower as a limited time offer. The portal operates in four major categories including Electronics, Home and Bedding, Appliances, Apparels and also some Automobile parts. The nerve center of this portal for Pakistan is located in Shanghai, China. 

Aniqa Afzal Sindhu, Head of Mobile Financial Services - Mobilink commenting on the partnership said, “The collaboration will provide customers with the utmost ease of shopping online along with the satisfaction of using a reliable and instant medium for payment. We at Mobicash continuously work to bring ease to our customer and this initiative is yet another step in fulfilling the needs of our customers.”

Speaking on this occasion Mr Aurangzeb Khan CEO Cheezmall.com stated, “The agreement will enable us to integrate into E-commerce market nationwide by introducing best customers solutions for online shoppers. Our product’s quality and best customer service has assured 95% acceptance rate of the products because the products we are dealing in are not available anywhere with such a cost effective price and quality.”

To utilize this mobile financial service, Mobicash users can generate an order and pay by visiting Mobicash retail outlet or directly through their Mobile Accounts or credit / debit card.

Environment Department asked to take LCCI on board

Lahore (Staff Reporter): The Lahore Chamber of Commerce & Industry has urged the Punjab Environment Department to take LCCI on board before taking any action against industrial units. In a statement issued here, SVP of the LCCI Almas Hyder said that at present when industrial sector is coping with a number of internal and external challenges, it needs helping hand from all the concerned departments. The LCCI Senior Vice President suggested to the Punjab Environment Department that new companies may be given relaxation from visits of inspectors of Punjab Environment Department for initial three years of their incorporation and not get bogged down on compliance at the inception of their enterprise.

He said that most of the factories start their business after getting an NOC from Environment Department.

He said that Punjab Environment Department should print details of the 52 different technologies that were discussed to comply to environment standards. He said that inspectors of Punjab should advise and give appropriate technology brochures to the enterprise before any challan or summon is issued.

Almas Hyder said that industrial sector wants to comply to all laws, rules and regulations but for the purpose, Punjab Environment Department should adopt a friendly approach towards better compliance.

Finance reviews power projects

ISLMABAD (Staff Reporter): Finance Minister Ishaq Dar here on Saturday chaired a high level meeting to review progress on development projects in the power and petroleum sector, including those, which are being undertaken under CPEC (China Pakistan Economic Corridor). Federal Minister for Water and Power, Khwaja Muhammad Asif, Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi, Secretary to Prime Minister, Fawad Hasan Fawad, senior officials of the Ministries of Finance, Water & Power, P&NR, PPIB, Nepra and NTDC attended the meeting. The meeting was briefed about the progress on hydel, gas, wind, solar and coal based projects being undertaken for enhancing power generation.

The meeting was also informed about the financials arrangements and the timelines being followed in respect of each project.

The meeting simultaneously reviewed arrangements concerning provision of gas for power projects and development of the required infrastructure.

The meeting was apprised that a large number of projects in both power and petroleum sector would be completed by December 2017, which would add up to 10,000 MW to the national grid and help resolve the problem of energy shortage.

The Finance Minister on this occasion emphasized that timelines for different projects should be strictly followed. He also desired for update on the progress of these projects on regular basis.