Details

Case

Educator Copy

Al-Karam (Private) Limited: Secured Commercial Paper

Momina Aijzuddin, Naim Sipra


INDUSTRY : Textile

AREA : Finance

ORGANIZATION : Al-Karam Pvt. Ltd.

LENGTH : 10

LUMS No : 02-605-98-1

PUBLICATION YEAR : 1998

DESCRIPTION

KEYWORDS:

Al-Karam,Private,Limited,Secured Commercial Paper,Finance,Textile,Fabric,Lawn


DESCRIPTION:

The corporate sector in Pakistan has traditionally been dependent on the banking system for its shortterm capital needs. This case intends to expose students to a new way of accessing short-term finance in the Pakistani market. The Al Karam Short-Term Finance Certificates (STFC), issue was the first private placement of commercial papers in Pakistan. It was an attempt to introduce the commercial paper as a means of raising short-term finance directly from the market by the issuer and as a treasury instrument in the hands of the intermediary.


LEARNING OBJECTIVES:

This case can be used in a Financial Accounting, Corporate Finance course for 2nd year MBA's or in Executive Programmes. It is intended to introduce students to new ways of accessing short-term funds, money markets in Pakistan and how they operate as well as new instruments in Pakistan.


SUBJECTS COVERED:

Finance