Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Withdraws Debt Instrument Rating of FINCA Microfinance Bank Limited | PPTFC Tier II
Rating Type | Debt Instrument | |
Current (29-Oct-19 ) |
Previous (29-Apr-19 ) |
|
Action | Withdraw | Preliminary |
Long Term | - | A- |
Short Term | - | - |
Outlook | - | Stable |
Rating Watch | - | - |
The company proposed to raise its second Term Finance Certificate, a Privately Placed, Unsecured, Subordinated instrument, in the nature of Additional Tier II Capital, with an amount of PKR 1.5bln (including green shoe option of PKR 500 million). The instrument had a tenure of 7 years from the date of disbursement, with a profit rate of 6M-KIBOR+ 2.40%.
FINCA does not intend to issue the instrument, thereby PACRA withdraws PPTFC Tier II Rating, assigned 'A-' with immediate effect.
About
the Entity
FINCA Microfinance Bank commenced its operations in 2013 and operates with a network of 135 branches. The bank is majorly owned by FINCA International (86.4%), through FINCA Microfinance Cooperatief U.A; a commercial arm registered in Holland. Kashf Holdings holds ~5.2% stake in the bank. The remaining stake is distributed among i) International Finance Corporation (4.9%), ii) Triodos Fair share fund (2.7%) and iii) Accumen Fund Pakistan (0.8%). FINCA, offers a diversified range of financial products and services. In Sep'19, Mr. Farid Ahmad Khan replaced Mr. Mudassar Aqil as the CEO of the bank. Mr. Farid is a seasoned professional, having 25 years of global experience in financial services. Before joining FINCA, he was associated with the asset management wing of a leading commercial bank in Pakistan.