Global Depository Receipt

Umair Ali Shah

8658
FMI
 What is a GDR?
• A bank certificate issued in more than one
country for shares in a foreign company. The
shares are held by a foreign branch of an
international bank. The shares trade as
domestic shares, but are offered for sale
globally through the various bank branches. A
financial instrument used by private markets
to raise capital denominated in either U.S.
dollars or Euros
GDR impact on global financial market?
• The GDR functions as a means to increase global
trade, which in turn can help increase not only
volumes on local and foreign markets but also the
exchange of information, technology, regulatory
procedures as well as market transparency. Thus,
instead of being faced with impediments to foreign
investment, as is often the case in many emerging
markets, the GDR investor and company can both
benefit from investment abroad. Let’s take a closer a
look at the benefits:
GDR impact on global financial market?

• For the Company

• For the Investor

 Q) Pre GDR and Post GDR company impact

• OGDC’s recent experience in offer of GDRs in

January 2007
• MCB Bank Ltd successful experience
• Future plan relating to offering GDRs of United
Bank Ltd, National Bank of Pakistan, Kot Addu
Power Company Ltd. and Habib Bank Ltd.