mark up at the rate payable by the Holding Company for rupee finances of like

Mark up at the rate payable by the holding company

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mark-up at the rate payable by the Holding Company for rupee finances of like maturities plus a margin of 1%. The effect of IFC conversion in substance would result in a loan from the Holding Company having the same repayment terms / dates as that of Tranche A. On December 22, 2010, the Company and IFC entered into an amended agreement for further disbursement of USD 30,000 over and above the aforementioned disbursed amount of USD 50,000. The amount was fully disbursed as at June 30, 2011. The salient features of the Original Loan essentially remained the same. The additional loan of USD 30,000 is divided into (i) 30% convertible loan on the shares of the Company at Rs. 41.67 per ordinary share calculated at the dollar rupee exchange rate prevailing on the business day prior to the date of the notices issued by IFC to exercise the conversion option and (ii) 70% non-convertible loan. The additional loan is repayable by September 15, 2017 in three equal installments and carries interest at six months LIBOR plus a spread of 6% or 10% depending on the listing status of the Company at December 31, 2012. The management is confident that it will be able to successfully negotiate the terms and hence no related provision for the differential amount of Rs. 244,879 as at June 30, 2013 has been made in these financial statements. An update on the negotiation with IFC is provided in section 3.1 of the prospectus. The fair value of the aforementioned conversion options, included in note 18 of June 30, 2013 Financial Statements, on the date of disbursement amounted to Rs. 338,647 and Rs. 63,000 for the original and additional loan respectively and is being amortized using effective interest method. The residual amount, representing the loan liability component is shown as long term borrowings. The fair value of these options as at June 30, 2013 amounted to Rs. 400,085 (December 31, 2012: Rs. 243,964). 8.10.6.5 These represent secured and listed Term Finance Certificates (TFCs) of Rs. 4,000,000. The TFCs are structured to redeem 0.28% of principal in the first 84 months and remaining 99.72% principal in two equal semi-annual installments. First Dawood Islamic Bank is the trustee for these TFCs. 8.10.6.6 These represent secured and listed Term Finance Certificates (TFCs) of Rs. 2,000,000. The TFCs are structured to redeem as follows: Year Redemption (%age) 1 0.04% 2 0.04% 3 7.96% 4 7.96% 5 12% 6 12% 7 60% IGI Investment Bank Limited is the trustee for these TFCs. 8.10.6.7 This represents Subordinated Privately Placed listed TFCs amounting to Rs. 4,000,000 (PPTFC Issue I) and Rs. 2,000,000 (PPTFC Issue II) respectively. The PPTFCs are perpetual in nature with a five year call and a ten year put option. The PPTFC I issue has mark-up of six months
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Page 78 of 94 KIBOR plus 1.7% whereas the PPTFC II issue has mark-up of six months KIBOR plus 1.25%. IGI Investment Bank Limited is the trustee for these TFCs. In 2011, the aforementioned TFCs have been listed on the Over-The-Counter (OTC) market of the Karachi Stock Exchange.
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