The Pakistan Credit Rating Agency Limited
11-Jan-23
Analyst
Muhammad Azmat Shaheen
azmat.shaheen@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Financial Institution Rating | Jun-22
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Rating Modifiers | Jun-22
Related Research
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA
PACRA Withdraws Rating of Soneri Bank Limited | TFC II | Jul-15
| Issuer | Soneri Bank Limited |
| Instrument | TFC-II |
| Amount | PKR 3000 mln |
| Issuance Date | 01-Jul-15 |
| Tenor | 8 Years |
| Redemption Date | 20-Dec-22 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (11-Jan-23 ) |
Previous (09-Dec-22 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | A+ |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
On November 02, 2022, the Bank made a public notice to exercise the Call Option in full in respect of the TFC issue. Under the notice, for the Call Option, the Option redemption date was December 20, 2022, on which the bank redeemed in full the entire principal amount of PKR 3,000mln along with the accrued profit payment.
Subsequent to the redemption of the Term Finance Certificate, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Soneri Bank Limited | TFC II | Jul-15.
About
the Entity
SNBL, established in 1991, operates with a network of 360 plus branches including 35 Islamic banking branches, 15 Islamic banking windows and 1 sub-branch. The Bank’s primary sponsors are the Feerasta Family who collectively own majority share in SNBL. The Feerasta Family has diverse commercial interests ranging from manufacturing, exporting, banking and trade financing. The overall control of the bank vests with an eight-member board of directors comprising five non-executive, two independent and one executive director (CEO).
About
the Instrument
SNBL issued its 2nd unsecured, subordinated and listed TFC (Soneri Bank Limited | TFC II) of PKR 3bln in 2015. The amount raised through this Issue contributed towards SNBL’s Tier II Capital in accordance with SBP guidelines on capital adequacy. Furthermore, the amount raised was utilized in SNBL’s normal business operations as permitted under its Memorandum &Articles of Association. The profit was paid semi-annually in arrears at the rate of 6MK+135bps on the outstanding amount. Total 0.30% of the principal was redeemed in the first 7years of the tenor through semiannual payments and the remaining principal of 99.70% at redemption. The instrument was subordinated as to the payments of principal and profit to all other indebtedness of SNBL, including deposits. The instrument was subject to lock in clause, loss absorbency and/or any other requirements under SBP’s Basel III Capital Regulations. Call option was exercisable on and after five years of the issue date.