The Pakistan Credit Rating Agency Limited
29-Jun-21
Analyst
Timnat Thomas
timnat.thomas@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Withdraws Rating of Bank AL Habib Limited | Tier-II | PPTFC V | Mar-16
| Issuer | Bank Al Habib Limited |
| Instrument | PPTFC-V |
| Amount | PKR 4000 mln |
| Issuance Date | 17-Mar-16 |
| Tenor | 5 Years |
| Redemption Date | 21-Mar-21 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (29-Jun-21 ) |
Previous (29-Jun-20 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | AA |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
Bank AL Habib issued a rated, unlisted, unsecured and subordinated PPTFC-V in Mar-2016 of PKR 4bln(inclusive of a Green Shoe option of PKR 1bln) to contribute towards AL Habib's Tier II Capital. The funds so raised were also planned to be utilized in the Bank's normal business operations. The tenor of the instrument was 10 years and carried a profit rate of 6M-KIBOR plus 0.75bps being paid semiannually in arrears on the outstanding principal amount. The instrument was unsecured and subordinated as to payment of principal and profit to other indebtedness of the bank, including deposits.
On January 12, 2021, 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 March 17, 2021, on which the bank redeemed in full the entire principal outstanding amount of 3.993bln along with the profit payment of 152.567mln.
Subsequent to the redemption of the Term Finance Certificate, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Bank AL Habib Limited | Tier-II | PPTFC V | Mar-16.
About
the Entity
BAHL, incorporated in Oct 1991, operates with a network of 850 branches /sub-branches, including 106 Islamic banking branches at end-Dec-20. The Bank has a vast ATM network of 1090 (including about 176 offsite ATMs) and 7 Mobile vans. The sponsors of BAHL are members of the Habib family - one of the oldest and most distinguished names in Pakistan's banking sector. BAHL's ten-member BoD includes representatives of the Habib family and independent members. Mr. Mansoor Ali Khan, the Bank's CEO, has been associated with the Bank for more than 25 years. He is backed by a team of experienced professionals, most of whom have a long association with the Bank.