KARACHI, July 11: Engro Chemical Pakistan Limited announced on Thursday that its public offer of Term Finance Certificates (TFCs) of Rs200 million was oversubscribed by four-and-a-half times.

The Rs200-million public offer was a part of the total issue size of Rs1,000 million. Earlier, TFCs worth Rs800 million were privately placed amongst various investors.

The company said in a press release that the offer was the second tranche of the total shelf registered amount of Rs1,500 million, of which TFCs worth Rs500 million had been issued in November last year.

The company stated that as per the basis of allotment, investors applying for Rs5,000, Rs 25,000, Rs 50,000 and Rs100,000 would receive their full allocation, whereas those who had applied for TFCs in multiples of Rs100,000 would receive a pro-rata allocation.

The TFC issue would finance the company’s annually recurring capital expenditure programme, energy conservation and environmental improvement projects. The TFC tenor is five years with principal amount being redeemed from the fourth year in four equal semiannual instalments. The TFC carries a variable profit plan with a minimum rate of 11 per cent and maximum of 15 per cent based on the auction results of five-year PIB bonds. The issue has been rated AA- (double A minus) by Pacra.