P R O S P E C T U S for EXIM Bank 1st Mutual Fund "Promoting Innovation in our Capital Market" SIZE OF THE FUND: Tk. 100 crore divided into 100,000,000 units at par value of Tk. 10 each SPONSOR'S CONTRIBUTION: 20,000,000 Units of Tk. 10 each at par for Tk. 20 crore PRE IPO PLACEMENT: 30,000,000 Units of Tk. 10 each at par for Tk. 30 crore PUBLIC OFFER: 50,000,000 Units of Tk. 10 each at par for Tk. 50 crore RESERVED FOR MUTUAL FUNDS: 5,000,000 Units of Tk. 10 each at par for Tk.5 crore NON RESIDENT BANGLADESHIS: 5,000,000 Units of Tk. 10 each at par for Tk. 5 crore AFFECTED SMALL INVESTORS: 10,000,000 Units of Tk. 10 each at par for Tk. 10 crore RESIDENT BANGLADESHIS: 30,000,000 Units of Tk. 10 each at par for Tk. 30 crore This Offer Document sets forth concisely the SPONSOR: information about the fund that a prospective Export Import (EXIM) Bank of Bangladesh investor ought to know before investing. This Limited Offer Document should be read before making an application for the Units and should be retained for future reference. Investing in the EXIM Bank st 1 Mutual Fund (hereinafter the Fund) bears certain risks that investors should carefully consider before investing in the Fund. Investment TRUSTEE: in the capital market and in the Fund bears Investment Corporation of Bangladesh certain risks that are normally associated with the investment in securities including loss of principal amount invested. There can be no assurance that the Fund will achieve its investment objectives. The Fund value can be volatile and no assurance can be given that investors will receive that amount originally invested. When investing in the Fund, investors CUSTODIAN: should carefully consider the risk factors outlined Investment Corporation of Bangladesh in the document. The particulars of the Fund have been prepared in accordance with wmwKDwiwUR I G·‡PÄ Kwgkb (wgDPz¨qvj dvÛ) wewagvjv, 2001, as amended till date and filed with Bangladesh Securities and Exchange Commission. The Issue/Fund shall be placed in "A" category. ASSET MANAGER: The Fund shall apply for listing with both the RACE Management PCL Stock Exchanges. Subscription Subscription opens: April 28, 2013 Subscription closes: May 05, 2013 For Non-Resident Bangladeshis Subscription closes on May 14, 2013 Date of Publication of Prospectus: March 28, 2013 Page-1 Table of Contents 1. PRELIMINARY .............................................................................................................................................. 8 1.1. PUBLICATION OF PROSPECTUS FOR PUBLIC OFFERING ............................................................... 8 1.2. APPROVAL OF THE BANGLADESH SECURITIES AND EXCHANGE COMMISSION (BSEC) ....... 8 1.3. LISTING OF FUND ..................................................................................................................................... 8 1.4. DOCUMENTS AVAILABLE FOR INSPECTION ...................................................................................... 8 1.5. CONDITIONS OF THE PUBLIC OFFER (PO) .......................................................................................... 9 1.6. SUBSCRIPTION .......................................................................................................................................... 15 1.7. DECLARATIONS ........................................................................................................................................ 15 2. BACKGROUND ......................................................................................................................................... 17 2.1. FORMATION OF EXIM BANK 1ST MUTUAL FUND ............................................................................ 17 2.2. FORMATION OF THE PROPOSED MUTUAL FUND IN THE CONTEXT OF PRESENT MARKET SCENARIO ....... 18 2.3. ADVANTAGES IN INVESTING IN EXIM BANK 1ST MUTUAL FUND .............................................. 18 2.4. THE CONSTITUTION OF THE FUND ..................................................................................................... 19 2.5. LIFE OF THE FUND .................................................................................................................................... 19 2.6. SIZE, FACE VALUE AND MARKET LOT OF THE FUND ...................................................................... 19 3. INVESTMENT OBJECTIVES AND POLICIES .................................................................................... 20 3.1. INVESTMENT OBJECTIVE ........................................................................................................................ 20 3.2. INVESTMENT POLICIES ........................................................................................................................... 20 3.3. INVESTMENT RESTRICTIONS ................................................................................................................ 20 3.4. VALUATION POLICY ................................................................................................................................. 21 3.5. INVESTMENT MANAGEMENT ............................................................................................................... 22 3.6. DIVIDEND POLICY .................................................................................................................................... 22 4. RISK CONSIDERATIONS ........................................................................................................................ 23 4.1. RISK FACTORS ........................................................................................................................................... 23 4.2. EXPECTED MARKET PERFORMANCE OF THE FUND ........................................................................ 24 4.3. WHO TO INVEST AND HOW MUCH TO INVEST .................................................................................. 24 5. FORMATION, MANAGEMENT AND ADMINISTRATION ................................................................ 25 5.1. SPONSOR OF THE FUND ........................................................................................................................... 25 5.2. TRUSTEE & CUSTODIAN OF THE FUND ............................................................................................... 25 5.3. ASSET MANAGER OF THE FUND ........................................................................................................... 26 5.4. AUDITORS ................................................................................................................................................... 27 5.5. LIMITATION OF EXPENSES ...................................................................................................................... 27 5.6. FEES AND EXPENSES ................................................................................................................................ 27 6. CAPITAL STRUCTURE, TAX STATUS AND RIGHTS OF UNIT HOLDERS .................................. 29 6.1. ISSUE OF UNITS ......................................................................................................................................... 29 6.2. PRE-IPO PLACEMENT ............................................................................................................................... 29 6.3. TAX EXEMPTION ....................................................................................................................................... 30 6.4. RIGHTS OF THE UNIT HOLDERS ............................................................................................................ 30 6.5. BENEFICIAL INTEREST ............................................................................................................................ 30 7. REDEMPTION / WINDING UP POLICY ............................................................................................... 31 7.1. PROCEDURE OF REDEMPTION / WINDING UP .................................................................................... 31 7.2. MANNER OF REDEMPTION / WINDING UP .......................................................................................... 31 7.3. EFFECT OF REDEMPTION / WINDING UP ............................................................................................. 31 8. CONDITION FOR PUBLIC OFFER, ALLOTMENT AND APPLICATION OF UNITS .................. 32 8.1. ISSUE OF UNITS .......................................................................................................................................... 32 8.2. MINIMUM SUBSCRIPTION FOR THE ISSUE .......................................................................................... 32 8.3. CONDITIONS OF ALLOTMENT ................................................................................................................. 32 8.4. APPLICATION FOR SUBSCRIPTION ......................................................................................................... 34 8.5. REFUND OF SUBSCRIPTION MONEY ...................................................................................................... 36 8.6. SUBSCRIPTION BY AND REFUND TO NON RESIDENT BANGLADESHI .......................................... 36 Page-2 Fund Directory Registered Office RACE Management PCL Sponsor EXIM Bank Limited Al-Razi Complex (3rd Floor) "Symphony" 166-167 Shaheed Syed Nazrul Plot # SE(F)-9 Road # 142 Islam Sarani Gulshan Avenue Purana Paltan, Dhaka-1000 Dhaka - 1212 Bangladesh Bangladesh Trustee Investment Corporation of Custodian Investment Corporation