Company Profile of Asia Insurance Limited

Name: Asia Insurance Limited

Date of Incorporation: 30th April 2000

Date of Commencement of Business: 30th April 2000

Date of Registration to Carry
on General Insurance Business: 30th May 2000

Registered & Head Office: T.K Bhaban (7th Floor), 13 Karwan Bazar, Dhaka-1215, Bangladesh.

Authorized Share Capital: Tk. 30,00,00,000/- cr which is dividend into Tk. 30,00,000/- shares of Tk.100/- each.

Approved Paid-up Capital: Tk.15,00,00,000/- which is divided into 15,00,000 shares of Tk. 100/- each

Present Paid-up Capital: Tk. 6,00,00,000/- which is divided into 6,00,000 shares of Tk. 100/- each, ownership of the Sponsor Shareholders.

Chairman : Mr. Yussuf Abdullah Harun, FCA

Vice-Chairman: Mr. Mohammed Jamal Ullah

Chairman (Executive Committee): Mr. Abul Bashar Choudhury

Managing Director: Mr. Md. Ezhar Hossain,ABIA

Company Secretary: Mr. Md. Atique Ullah Majumder, LL.B. (Hons.) LL. M.

Auditor: M/S. Pinaki & Company. Chartered Accountants. 2/4, Nawab Habubullah Road (2nd Floor), Shahbag, Dhaka-1000.

Website: www.asiainsu.com

Prospectus of Asia Insurance Limited

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Bashundhara Group has said it would go ahead with a US$700 million investment in the country's first private sector refinery despite objection by the state-owned Bangladesh Petroleum Corporation (BPC).

The largest private sector project in the country would be built at 112 acres of land Bashundhara acquired in the south bank of the Karnaphuli river and it will have the capacity to refine 2.5 million tonnes of crude a year.

"We have conducted a feasibility study of the project and are now in the process of striking a deal with Technip to commission the refinery. The refinery is expected to start operation by 2012," chief coordinator of the project M.Z Arzu said.

France-based Technip is the global leader in refinery technology and commissioning. It built Bangladesh's first state-owned Eastern Refinery Limited (ERL) way back in 1968.

The real-estate-to-paper giant said it has sought permission from the energy ministry submitting all the required documents and study reports needed to set up a refinery in the country.

"If the government approves our project tomorrow, we will start construction process the next day. We have even readied international funds for the project," Arzu said.

He said the group has also roped in top local consultants including former special aide to the chief advisor M Tamim to execute the project in about two years time.

The refinery investment marks the end of two years of wilderness of Tk30 billion conglomerate during which its owner and his family had to leave the country after being targeted by the army-backed caretaker government in its anti-graft drive.

Group chairman Ahmed Akbar Sobhan, his wife and three sons were tried in absentia in a tax evasion case by an anti-graft court, leading to massive slump in its flagship real estate business and suspension of some key projects.

Sobhan and his family came back after the restoration of democracy early this year and have unveiled the group's expansion drive. They have also appealed against the tax evasion case.

Arzu said the group wants to make up lost time by investing in big infrastructure projects including a refinery and a private sea-port.

"During his stay abroad, the chairman also discussed setting up the refinery project with foreign consultants. Now we are just waiting for a positive signal from the government," he said.

But much before the energy ministry's clearance, the BPC, the country's lone state-owned petroleum marketing and distribution agency, has raised some serious objections into the project.

Ordered by the ministry, the BPC last month set up a high-powered committee led by its operation director to assess the Bashundhara refinery project.

The committee has already submitted its report, saying it won't allow the company to sell any of its products in Bangladesh where it enjoys total monopoly.

"We have said that Bashundhara has to export its entire production overseas. They can sell the products to us provided need them," a BPC official who is also member of the committee said.

"They can import crude oil, refine them in their refinery, but won't be able to sell their refined oil in the country. They will also have to set up the refinery ensuring all international standards," he said.

The BPC has also asked Bashundhara to assess environmental impact of the project and conduct a final techno-feasibility study before its operation.

"We have said that we would only clear the project when it completes all the required techno-feasibility studies," he added.

Bashundhara project director Arzu said the company would abide by "all the norms" needed to set up the refinery and was ready to sell all its production overseas if the BPC does not need its refined oil.

"We can sell our entire 2.5 million tonnes production abroad. We are not in the business of competing with BPC or any other state agencies," Arzu said.

Experts have said Bashundhara was trying to capitalise on inadequate capacity at the country's lone state-owned ERL, also situated in Chittagong.

Presently ERL can refine 1.2 million tonnes of crude a year, which is around 30 per cent of the country's total demand. BPC buys the rest of the amount mostly from the gulf countries.

The ERL recently unveiled a plan to raise its production to 4.5 million tonnes, enough to meet the country's entire petroleum demand. A Pakistani company is conducting a feasibility study for the expansion project.

Although Islamic Development Bank has said it would finance part of the project, there is still a big question mark over how the ERL is going to raise $1.0 billion needed to finance the expansion.
by- Mushir Ahmed and Jasim Uddin Haroon

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Private carrier United Airways plans to raise Tk 100 crore through an initial public offering (IPO), evidence of becoming the first listed airline in Bangladesh stock market.

The airline will use the capital in expanding its horizon in international flight operations, officials said.

“We hope we can float our shares on the stock market within this year,” Tasbirul Ahmed Choudhury, chairman and managing director of United Airways (BD) Ltd, told The Daily Star yesterday.

Another senior official of the airline however said it plans to go public by October.

“We have already appointed AAA consultant and financial advisers as underwriter and issue manager,” he said, adding that the company will purchase an aircraft to run it on international routes.

The face value of each share will be Tk 100.

Welcoming the move, market experts said it will be a milestone for Bangladesh's capital market, as such listing is the first time for a an airline here.

“The initiative will increase the market depth besides bringing about a structural change,” said Professor Salahuddin Ahmed Khan of the Finance Department at Dhaka University.

It also proves that the stock market can act as a financing industry, he said.

“The regulators, market authorities, investors and other stakeholders should provide support to the airline so that it can easily be listed with bourses,” he added.

The United Airways, a venture of non-residents Bangladeshis (NRBs), has already planned to expand its global operations and is expecting to fly to new destinations, including the Gulf aviation hub of Dubai, Kuala Lumpur and Kathmandu, by mid-2009.

A 170-seater MD-83 aircraft for $9 million (Tk 62 crore) will be added to its existing two-carrier fleet by May. Earlier, the airline purchased two Dash 8-100 aircraft for about $8.5 million (Tk 57 crore) each.

The carrier recorded a turnover of about Tk 41 crore in 2008 and targets a Tk 140 crore turnover this year.

United Airways, which entered the domestic aviation market in July 2007, has some 500 shareholders, 95 percent of which are NRBs living in the UK. It started its domestic passenger flights on July 10, 2007 and presently operating on Dhaka-Sylhet, Dhaka- Chittagong, Dhaka-Cox's Bazar, Dhaka-Jessore and Dhaka-Barisal routes.

It entered into the international arena on September 24, 2008 by launching its Dhaka-Kolkata flight.

The private sector airline on Sunday announced that it is scheduled to begin operations on the Chittagong-Kolkata route from March 30 to cater to the growing needs of the residents of the port city.

At a press meet in Chittagong, the airline officials said the company eyes to stretch its wing further in the next five years with an investment of Tk 2,000 crore. In order to meet that challenge, it plans to begin operations on the Dhaka-Kathmandu, Dhaka- Kuala Lumpur, Dhaka-Dubai and Chittagong-Bahrain routes very shortly.

by- Sarwar A Chowdhury

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Board of Directors of Trust Bank Limited has recommended 20 per cent stock dividend for its shareholders for the year 2008.

An extraordinary general meeting (EGM) of the bank will be held to increase its authorised capital from Tk 2.0 billion to Tk 5.0 billion subject to no objection of Bangladesh Bank.

EGM and annual general meeting (AGM) of the bank will be held on May 31, 2009. Record date for EGM and AGM is on April 30. Venue of the EGM and AGM will be notified later.

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IFIC Bank Limited has recommended 30 per cent stock dividend for its shareholders for the year that ended on December 31, 2008.

The bank has also recommended amendment of Memorandum and Articles of Association of the bank to increase authorised capital from Tk 1.60 billion (160 crore) to Tk 5.35 billion as approved by Bangladesh Bank.

The extraordinary general meeting (EGM) and annual general meeting (AGM) of the bank will be held at Basundhara Convention Centre in the city at 3:00 pm and 3:30pm respectively on July 28, 2009. Record date for EGM and AGM is on May 28, 2009.

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The Prime Finance First Mutual Fund will make debut in the stock market tomorrow (Tuesday).

The Dhaka Stock Exchange (DSE) approved the listing of the mutual fund and fixed debut trading date of the issue at its board meeting held Sunday.

It will be the 17th mutual fund in the country's stock market.

The subscription of Prime Finance First Mutual Fund worth Tk 200 million ended January 17 last.

Face value of the each share of the new mutual fund is Tk 10.

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