The Pakistan Credit Rating Agency Limited
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Raniya Tanawar

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Bank Alfalah Limited redeems TFC V of PKR 5bln | Rating Withdrawn

Issuer Bank Alfalah Limited
Instrument TFC-V
Amount PKR 5000 mln
Issuance Date 05-Feb-13
Tenor 8 Years
Redemption Date 18-May-20
Outstanding Amount -

Rating Type Debt Instrument
Action Redeem Maintain
Long Term - AA
Short Term - -
Outlook Stable
Rating Watch - -

Bank Alfalah Limited issued an Unsecured, Subordinated and Listed Term Finance Certificates (“TFC V | Feb-13 ”) of an amount upto PKR 5bln. The instrument had a tenor of 8 years and carried a profit rate of 6MK + 125bps. The funds raised were to be utilized in BAFL’s business operations. The institution exercised its call option in full during the last quarter of year 2020 and was fully redeemed on 18th May'20.
Subsequent to the completion of the redemption process, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Bank Alfalah Limited | TFC V | Feb-13.

About the Entity
Bank Alfalah Limited (BAFL) has a network of 698 branches, at end-Dec19, across more than 200 cities in the country. Main sponsor Abu Dhabi Group (ADG), comprises some of the prominent members of UAE's ruling family and leading businessmen of UAE, continues to own majority stake (~49.03% at end-Dec19) in the bank.
At present, BAFL's BoD comprises eight members including President & CEO and seven Non-Executive Directors, of which four of whom are representatives of ADG, one represents IFC, while two are independent. Mr. Atif Bajwa has recently joined the Bank’s board as the President & CEO of the bank. He carries extensive international career experience spanning 37 years of executive leadership roles in banking.

About the Instrument
Subordinated loan (TFC V Unsecured) with an issue size of PKR 5 bln was issued in Feb13. Tenor of the instrument is eight years (Feb21) with a profit rate of 6M-KIBOR plus 125bps, payable semi-annually. 0.30% of the principal will be repaid in the first 90 months and remaining principal of 99.70% at maturity in the 96th month.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.