BDT 150 MILLION

SHORTTERM IOAN

Borrower
,|IAT'AOR
BALL FC HOUAIBE8

Matador Ballpen lndustries Ltd.

Arranger

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AALL PEX |I'DUATRIES
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Disclaimer
This information memorandum with respect to issuance of Short term loan (hereinafter referred as
"STl" or "the lssue") by Matador Ballpen lndustries Ltd (hereinafter referred to as ..MBtL,, or.,the
Company''or "the Borrower") has been prepared by NDB Capital Limited (her€inafter referred to as
NDB Capital) for circulation amongst potential lenders.

The company and market information, financial analysis, forecasts, assumptions and opinions
contained herein have been compiled or arrived at solely based on information obtained from the
rnanagement of MElL unless otherwise mentioned. NDB Caprtal does not provide any guarantee,
represeatation or warranty, expressed or implied as to the accuracy, completeness or correctness of
informat;on provided by MBIL- Nothing contained in this document is, or shall be relied upon as, a
promise or representation by NDB Capital. All such information is subject to change without notice
and such changes could be due to unforeseen circumstances. This document is for information
purposes only and does not purport to be a complete description of the subject matter referenced
to herein.

Accordingly, MBIL and NDB Capital shall not be liable for any loss or damage howsoever anstng as a
result of any person acting or refraining from acting in reliance or any information, forecast analysis
and opinion contained herein. The recipients of this investment document are expected to carrv out
their own independent evaluations on the transaction contemplated herein tBking into
consideration macro-economic variables and other relevant conditions. Further, the recipients of
this investment document are advised to obtain independent tax, legal and accounting opinions
prior to making any investment decislon. No person ls authorized to give any information or to make
any representation not contained in thls investment document.

The recipients of this investment document shall not, without the prior written consent of the
Company and NDB Capital, transmit, either directly or indirectly to any party, any of th€ information
contained herein. The recipients may disclose the lnformation at the request of any regulatory or
supervisory authority having jurisdiction over them, provided that they request confidential
treatment of such lnformation to the extent permitted by aw. Recipient of investment document
shall furnish only that portion of the tnformation that is legally requlred and shall disclose that
lnformation in a manner reasonably designed to preserve its confldential nature.

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ShortTerm Loon: Motodor Bollpen lndusties Ltd. llPage

Private & Confidential
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BALI PEN $TDUSTRIES ZW*
Contact lnformation

THE ARRANGER

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NDB Capital Limit€d
Bilquis Tower (sth floor)
Plot 6, Gulshan 2
Dhaka 1212, Bangladesh
Phone: (+880 2) 9888626, 9888979
Fax: {+880 2) 9888906
Websitei www.ndbcapital.com

SHAHANUR RASHID KABIR SADEEQ

Chief Operating Officer Manager
Phonei (+880 2) 9888626, 9888979 Phone: (+880 2) 9888626, 9888979
Mobile: +880 1811412 905 Mobile: +8801766 669 539
E maili shahanur@ndbcapital.com E-mail: sadeeq@ndbcapital.com

THE BORROWER

TAT'AOR
SALL FEN II{DUSTRIES

Matador Ballpen lndusfies Ltd.

1O2, Azihpur Road
Dhaka-1205
PABX: lo2l 9d77a2, sa672674
Fax: (o2) 58616765
Website: www.matador.com.bd

MD. ZIAUR RAHMAN

Deputy General Manager, Treasury
Matador Ballpen lndustries Ltd-
PAax lo2) 9677782, 5a612674
Mobite: +880 1816 O09 719
E-maili Ziaur.rahman@maiador.com.bd

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Short tem Laon: Matador Bdllpen lndustries Ltd. 2lPage

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ShoftTerm Loan: Matodor Bollpen lndustries Ltd- 3l

Private & Confidential
 ,l{IIA?{oR
INOUAIi|ES
BALL PEI{
2,"-,ND,hr*

Matador Ballpen lndustries Ltd. was established in 1998 as a proprietorship busin€ss (now a
private limited company) and is currently the largest local manufacturer of Bail point pen. tt
markets its products under the name of "Matador". The Matador Group is also engaged in other
industries Matador Writing lnstruments Ltd. (staiionery items), Matador pol!.fit lndustries (pVC
Fitting), Matador Polyfab lndustries {Non-woven fab.ics), Matador Diagnostic and Wellness
Center ttd., Matador Food and Allied lndustries Ltd. etc. This proprietorship concern was
ventured by Mr. Md. Shah Alam and the head office ls currently situated at Azimpur, Dhaka. tts
factory is situated at Kamrangirchar on a 16 Bigha Land- Present turnover ofthe company stands
at BDT 1,448.61 Milllon as at FYE 2018. The company has total asset base ot BDI 2,6]6_06
Million supported by bank borrowing of BDT 1,090.69 Million, and total equi:,/ of BDT 1,255.80
Million. lt made 8DT 104.28 Million net proflt after tax during the year. The company has been
awarded a credit rating of Ar (long term) and ST-3 (short term) by Credit Rating Agency of
Bang,adesh Limited. This rating was awarded on April 26,2018, and will be valid tilllanuary 15,
2019.

BIL is planning to raise BDT 150 million for 180 days through local currency Short term loan (STL)
to meet its working capital requirements. This lnformation Memorandum is placed with the
offer to banks and financial institutions for subscription to the proposed STL of MBtL.

2. The Structure: Terms & Conditions

Borrower Matador Ballpen lndustries Ltd.
lssue Size BDT 150.00 Million
Purpose To meet working capital requirement
lnterest Rate 9% p.a.
Maturity 180 days from date of disbursement
Security/Documentafi on Personal guarantee of shareholding directors of Matador Eallpen
" lndustries Ltd.
"/ Corporate guarantee of Matador Writing lnstruments Ltd.
r' Usualcharge documents
Interest & Principal Eoth interest and pnncipal will be pard in monthly instaliments.

Repayment The borrower shall ensure that the repayment of Short term loan, i.e.
both principa and interest be paid on the maturity dat€ through six
mohthly installments.
Governing Law & The short term loan agreement shall be governed by and construed in
-lurisdiction accordance \tuith the laws of Bangladesh. The courts of Bangladesh
shall have exclusive jurisdiction to resolve any disputes between the
parties
Overdue Overdue interest will be charged @ prevailing interest rate on the
lnterest/Delinquent overdue amount for the delayed period. Penal rate of 2% p.a. higher
Charge than the prevailing interest rate will also be charged on the ove.due
amount as delinquent charges for the delayed period.

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ShoftTerm Loan: Matador Ballpen Industries Ltd. 4l

Private & Confidential
 AATA9(,R
AALI PEI{ I'IOUSTRIES Z NDB
3. The Borrower: Matador Ballpen lndustries Ltd.
Matador Ballpen lndustries Ltd. currently holds the leading market share among the local
manufacturers of ball pen with broad product lines including non-refillable and refillable as well
i.e. "Hi-school", "iteen", "All-Time", "Elegant", "Radianf', "Orbif,, and "Gripper" etc. The
lndustry is highly compstitive due to the presence of foreign players (hdian & Chinese).
Currently MglL can Froduce 950.40 Million ball pens per year. Average utilization capacity var:es
according to the market demand projection fetched by MBPI'S marketing team as well from the
distributors. ln FY 2015 the firm added hew ink filling machines, screen printing machine,
extruder and injection molding machines etc- for enhancing its capacity.

Raw materials are procured locally and imported from China, lndia, Vietnam, Korea, Thailand
etc. Major raw materials are tips for ball point pen, ink, PP, GPPS, ABS resin, thermoplastic
rubber, Santoprene, BoPP film, Stamping foil, Heat Transfer Film and master batch colors etc.
Price volatility duaing the last couple of years due to exchange rate fluctuation heightened raw
material cost which subsequenUy affected profitability margin to some extent. Demand for MBIL
products reaches its peak during public examinations- Currently MBIL has more than 300 dealerc
and distributors in Bahgladesh.

Brief Profile of Chairman:

Mr. Md. Shah Alam
Ma. Md. Shah Alam, Chairman ofthe company graduated from Department of Law, University of
Dhaka with a First class flrst in 1961. He practiced lawfor long twenty-two (22) years. ln 1983 he
started his business endeavor with combs. later on he moved on to Tooth Brush busihess. ln
1998 he founded MBIL as a proprietorship and has been running this business successfully till
date- His four sons acting as the directors of the company help him in running the operation of
both MBIL and the sister concerns. Their brief profile is as follows:

g. Year of
Name Designation Education Profession
No. Experience
1 Md. shah Alam Chairman rL8 (DU) Chail"man of MBIL and 40Years
Director of Matador Group
2 Muhammad Dircctor rLM lDU) Professor Dept. of Law 23 years
Khurshid Alam (DU)/Director of Matador
Group
3 Jahangir Alam Director MA (DU) Director of Matador Group 20 years
4 Md. Rowshon Director BA Director of Matador Group 18 years
Jamir
5 Mohammad Managing BSc Eng. Managing Director of MBIL 16 years
sagirul Alam Director in EEE and Director of Matador
(BUET) Group

Credit Rating of the Borrower:

Particulars [ong Term ShortTerm
Credit Rating sT'3
Validity of the Rating January 19, 2019 January 15,2019
Credit Rating Company Credit Rating Agency of Bangladesh Limited
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ShortTerm Loon: Matodot Bollpen lndustries Ltd. 5lPage
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Plant & Machinery ofthe Borrower:
The listofplant and machineryof Matador Ball n lndustries Ltd. is given below:
Quantity GrandTotal
2 1t7.7/1
12 7.541.595
16 17.tO1,A06
3 1,,397,O6a
4 3,138,403
12 30,2s9,81
6 17,243,fi1
4n l:0,421,,974
NK Fillins 36 83.318.800
13 8.090.705
Chenrpenne Machine 18 189.949.265
PaperMakins I\4/C 8 8,305,343
6 6,343,342
SewinF Machine 5 865,102
Iotal 4g,24o,276

4. Financial Highlights:
Two Tables showing the historica I fi nancials (From 2013-2018)of MBtL are given below:

Statement oI lncome

Year2of Year2017 Ye.r2015 Year2ol5 year

14 44,606,333 0 1,450,506,3000 t,353,326,412O t,277,281,A16.0 963,535,3590

997,907,033 O 1,109,645,61a 0 1"066,522,4500 1m6,63a,6600 759,721lm0
45q699,250.0 3{0,a6r$20 2I35,4O3,56LO 210,59€,276,0 2O3,a14,759.O

296,24L437.O 77t,512,702.O 747,491),445.0 7@,057,654.0 30,591,755.0

Admrnrstrat ve txpenses \10,669,722.0 3O,O41,436.0 5&02r"826.0 52,28,9430 26,665, r3O 0
9el!irg & Dislnbulion E:perses 53,926,576 0
13,313,117,0 131,531,561.0 773,223,63.4
Les liadnclalExpenses 57,343,n6 0 42,813,532 0 45,60a,5690 57,339,399 0
'to,351,5770

104,275,091,0 126,535,49&0 e5,922,99?',O 65,3316040

37.11% 2a.rJ'4, 21.lq,i 21.79 2L15%

OpeEting PrcIit Margin 11.6S,4 10.!14

301 3.96 341 2.34 213

l stotlcol lncorne Stotemefi d MBIL

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ShaftTerh Loon: Mdtador Bollpen lhdustries Ltd. 6lPage

Private & Confidential
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Statement of Finanaial Position

Y.arm17 Year 2016

241,504,454 210,553,557 167,!65,653

5a2,OU,746
1!095,324 3,245,6t1
Advances, deposit5 & Prepayments 11,375,353 9,371,545

C.sh & cash Eq!ivalents

470,997,427 432,145,659 759,0711la 639889,699

Pro!.ietols Cao*al

t26,535,497 35,922,993
\322,A43 317)
{1r7,241,103)
Expenses&lnlere5l
Advance 1n..fr. T:x (43,eI,;67) {3s,.c!6,;3sl (32.153,9O2]

Build ngconstru.tron (50,072,555)

Wi!hd rawal for Matador Polyiil tndusties
Wirhdrawal forMatado.Polyfab tndustries
Wilhdrawal foriamily expenses (6,0o5,0m) i2,220,00o)
I13O,334,356) 1217,A]a,276]' 12Lt,9O7,761) 12@,171,s271

toa./Frnance tease - Noh curent P.t.n 30,996,657 19,364,130

cu ent Liabilities
Tot.l rlrdh 151,521,U3 h,*6,667 19,364,130

Loanfrom sanks&NBFk
Loan lrom sister concerns
20,163,203
Trade andoth.rPayablet 160,625,635 221,!92,421

Tot.l sh.ehold€I Equity & Uabiliri€s

Hlstorl.ol Stotement o, nnoncldl Posftton ol MB,L (201+2017: proprieto6htp pedod)

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Short Tem Laon: Motador Ballpen lndustries Ltd. TlPage

Private & Conlldential
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Staternent of Financial Position

Non curentAssets
Property, Plaht & Equipment

Trade re.eivables
Advan.es, deposits & P
Adwan.e income tax
Cash & Cash Equivalents
Total CufientAssec

2,676,O57 ,343

Equtty & Liat irities

shareholder Equlrv
lssued & Pald up capital
R€tainecl Earnings
Total sha'ehold.r Equity

Non Currcnt Lialratiries

Loan/Finance Lease Non curreht podion
Tobl Non Curreht Liabirities

Curr.nr uabitiri.s
Loan from Banks & NBFIS

Provision for expenses

Iotar curent fiat llfties

Tot.l sh.rehdlder Equrtv & Lt.t rdes

Debt/Equiiy R.tio
lnv€ntoryto Sales L.tio
Rctqrn on As.t3 Raflo
R€lurn on lhv.stm€nt REtl6

Hhtoiicol Sto'rmena d Finonciol Poslttoo d MBIL (2078: P.troE Llml,ld Compony)

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Shoft Term Loan: Matador Ballpen lndustries Ltd. 8l

 ,rIATAP(,R
BAIL P€N INOUSTRIES ZW*
5, lnformation of sister concerns
Matadoa Ballpen lndustries Ltd. has several sister concehs as follows:

. Matador Writing lnstruments Ltd.

. lAatador Polyfit lndustries
. Maiador Polyfab lndusties
. Matador Diagnortic and Wellness Center Ltd.
. Matador Food and Allied lndustries Ltd.

The information and financi6ls of some ofthe sisterconcerns are given below:

MatadorWrirlne lnsrruments Ltd, 2m5 742.45 251.24 3196 225.24

MatadorPolyfit ndustr es 2@9 152.55 :15,1O 157.31 33 32 5&99
NlatadorPolyiab industles 20!4 101.13 10 32 103.18

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Shot'tTerm Loon: Motodor Bollpen lndustries Ltd. 9lPage

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5. Group Liability Position

MATADOR BALLPEI{ INDUSTRIES LTD,

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ShoftTerm Loon: Matador Ballpen lndustries Ltd.

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DOU'TiIE!
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7. lendingConsiderations
The short term loan (for 180 days) facility to MBIL ls offering an interest rate of 9% per
annum which is well above the prevailing 180 days deposlt rate of prospective lenders.

The issue is secured by - Personal Guarantee of al, shareholding directors of Matador

Ballpen industries Ltd. and Corporaie Guarantee of Matador Writing lnstruments Ltd., a
sister concern of Matador Group.

The issue offers lenders a better return lnvestment option with acceptable risk level.

The company currently holds the leading market share among the local rnanufacturers
of ball pen with broad product lines.

MBIL is generatlng profit consistently over the years and the company has successfullV
managed to meet up obligation with banks and financial institutions on time.

MBIL will be repaying princlpal along \tuith interest through monthly installments-

f7 ., - efl *k',k^-
Md. Shah Alam
Malador BarrP€n ird. Lid

ShortTerm Loan: Matadot Bdllpen lndustries Ltd, 11 lPage