Meezan Bank and Karandaaz Pakistan host a Financing Conference for Vendors of Millat Tractor Limited
Financing Conference for Vendors of Millat Tractor Limited
Meezan Bank recently organized a conference for the vendors of Millat Tractor Limited in Lahore for promoting and creating awareness about the 50 million ‘Corporate Vendor & Distributor Finance Program’ launched in collaboration with Karandaaz Pakistan. This conference forms part of the tripartite agreement between Meezan Bank, Karandaaz Pakistan and Millat Tractor Limited aiming to provide financial access to small and mid-size automotive part vendors in the country.
The event signifies a major step forward in the advancement of local vendors and distributors in Pakistan with profitable growth potential and shall promote broad based employment growth in the region by promoting localization of automotive parts. Mr. Faisal A. Malik, Head of Supply Chain Finance Program – Meezan Bank educated the participants on the Bank’s supply chain initiative, detailing the program-based term funding structure of the Corporate Vendor and Distributor Finance Program, financing products and the overall process flow.
Speaking at the conference Ms. Huma Khalid, Principal Credit -Karandaaz Pakistan, highlighted that in view of the emerging trend of consolidation in supply chain, both globally and locally, in order to remain sustainable, SMEs would need economies of scale and upgradation in technology. The Supply Chain Finance Program, jointly being run by Karandaaz Pakistan and Meezan Bank, has specifically been designed to provide timely growth capital to SMEs to ensure steady SME growth, increase the SME capital asset base, and, improve employment generation.
While speaking to the audience, Mr. Ahmed Ali Siddiqui, Head of Product Development & Shariah Compliance – Meezan Bank emphasized on the critical importance of Islamic Finance as compared to conventional banking system for the economy. He detailed responsible financing guidelines of the Bank that serve to protect local vendors and distributors from falling into financial hardships. He also discussed the various financing structures that can be used to meet the financing needs of the vendors of Millat Tractors, helping them identify the steps needed to improve their eligibility for the program.
Mr. S M Irfan Aqueel, CEO Millat Tractors Limited greatly appreciated the efforts of the sponsors in creating this program and reaffirmed Millat’s commitment to the program. He said,
Easy access to finance will help SMEs develop and equip themselves to meet emerging challenges as well as capitalize on opportunities. Millat takes pride in being a partner in this journey of creating an enabling environment for SMEs.
Millat Tractors Limited (MTL), an ISO 9001:2008 certified company is Pakistan’s leading engineering concern in the automobile sector engaged in the manufacturing and marketing of world renowned Massey Ferguson (MF) tractors under licensing agreement with AGCO Ltd. UK; Forklift Trucks under license from Anhui Forklift Trucks, China; Diesel Engines; Diesel Generating Sets and a range of allied agricultural and industrial implements.
MTL has an unmatched, elaborate and extensive field network spread throughout the country. This network comprises of 72 main dealers, 61 spare parts dealers and more than 400 authorized workshops where MTL trained technicians provide efficient after- sale service to its customers.With more than 60 % share of the local tractor market, MTL has integrated and consolidated its technical know-how, expertise and sizable investment in allied industries to ensure adequate supplies of quality components by way of establishing 4 sister concerns. These companies, part of the Millat Group include Millat Equipment Limited, engaged in the manufacturing of power train parts, Bolan Castings Limited that manufactures precision castings for the automotive industry, Millat Industrial Products Limited manufactures automotive batteries and TIPEG IntertradeDMCC promotes worldwide trade of Millat Group of Companies and the vendors associated with it.
Millat Tractors has been recognized internationally by Plimsoll- UK and has nominated MTL as 16th largest company with exceptional performance in Global Tractor Manufacturing Industry. Forbes Global magazine has included MTL in “Asia’s 200 Best Under a Billion Dollar Companies”. Karachi Stock Exchange has ranked MTL 3rd among top 25 Companies of Pakistan in 2014. In 2015, MTL was awarded Certificate of Excellenceby“Management Association of Pakistan”. The company has also received achievement award in “Tractor & Agriculture Implements” sector by FPCCI in 2016.
The Company has entered into export agreement with its principals, M/s AGCO in Dec 2015. Now, Millat produced Massey Ferguson tractors are being exported to African & Middle Eastern countries which is a great achievement in itself and pride for Pakistan. This also reflects the quality and price competitiveness of Millat produced Massey Ferguson tractors
About Meezan Bank
Meezan Bank is among the leading Banks in the country. The Bank provides a comprehensive range of Islamic banking products and services through a retail banking network of more than 550 branches supported by a countrywide network of over 500 ATMs, VISA and MasterCard Debit cards, a 24/7 Call Center, Internet Banking and Mobile Banking facility.
Meezan Bank has consistently been recognized as the Best Islamic Bank in Pakistan by numerous local and international institutions, which is a testimony of the Bank’s commitment to excellence. These institutions include Islamic Finance News – Malaysia, Global Finance magazine – New York, Asset AAA – Hong Kong, Asiamoney – Hong Kong, The Banker – United Kingdom and CFA Association – Pakistan.
The JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, Japan has reaffirmed the Bank’s long-term entity rating of AA (Double A) and short-term rating at A1+ (A One Plus) with stable outlook. The rating indicates sound performance indicators of the Bank. Meezan Bank is the only Islamic bank with AA credit rating in the Islamic banking industry in Pakistan.