Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA withdraws the Rating of JS Bank Limited | PPTFC | Dec-16
Issuer | JS Bank Limited |
Instrument | PPTFC |
Amount | PKR 3000 mln |
Issuance Date | 14-Dec-16 |
Tenor | 7 Years |
Redemption Date | 14-Dec-23 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (01-Jun-22 ) |
Previous (25-Jun-21 ) |
|
Action | Redeem | Maintain |
Long Term | - | A+ |
Short Term | - | - |
Outlook | Stable | |
Rating Watch | - | - |
JS Bank Limited has issued Rated, Privately Placed, Unsecured and Subordinated Term Finance Certificate (TFC) of PKR 3,000mln on December 14, 2016. The purpose of the TFC was to contribute toward the Bank's Tier II capital for complying with the Capital Adequacy Ratio (CAR) requirement prescribed by the State Bank of Pakistan. The tenor of the instrument was 7 years and carried a profit rate of 6MK + 140bps. Since the Bank has the right of call option after the 10th redemption, so has exercised the call option on 28th Dec’21, and a new bond “JS Bank Limited | PPTFC | Dec-21” has been issued in its place.
Subsequent to the redemption of the PPTFC | Dec-16 the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of JS Bank Limited | PPTFC | Dec-16.
About
the Entity
JS Bank Limited (JSBL), incorporated in March 2006, commenced its banking operations on December 30, 2006. JSBL is a subsidiary (~75%) of Jahangir Siddiqui and Co. Limited (JSCL), whereas the rest is widely spread. The overall control of the bank vests in the Board of Directors (BoD) including the CEO. Mr Basir Shamsie joined as CEO in July 2018. He possesses work experience of more than 27 years, primarily in the banking sector.