Deal signed for Rs 20 billion 'Market Opportunity Fund'

[Naveed Yaseen]

AHMED MALIK
KARACHI (December 29 2008): An agreement was signed on Sunday among the participants for creating a Rs 20 billion 'Market Opportunity Fund' (MOF) regarding government guarantee, it is learnt. The fund will be managed by National Investment Trust (NIT).

Sources said that the fund would be used to start buying shares at the Karachi stock market in the next few days, after settlement of outstanding CFS shares issue.

Sources said that National Bank of Pakistan (NBP), State Life Insurance Corporation of Pakistan (SLICP), Employees Oldage Benefit Institutions (EOBI) and a consortium of six banks will provide Rs 5 billion each in the proposed fund.

In the consortium of banks, HBL, MCB, UBL and ABL will contribute Rs one billion each, while Bank Al Falah will provide Rs 750 million and the Royal Bank of Scotland Rs 250 million in the said fund. They said that the consortium will provide the amount at the rate of KIBOR+1.

Sources said that the fund will be buying the shares of only eight government owned listed companies including Oil and Gas Development Company (OGDC), Kot Addu Power Company (Kapco), Pakistan Petroleum Limited (PPL), Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines (SNGPL), Pakistan State Oil Company (PSO), National Bank of Pakistan (NBP) and Pakistan Telecommunication Company (PTCL).
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