The Pakistan Credit Rating Agency Limited
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Timnat Thomas

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PACRA Withdraws Rating of AlBaraka Bank (Pakistan) Limited | Sukuk | Sep-14

Issuer AlBaraka Bank (Pakistan) Limited
Instrument Sukuk-I
Amount PKR 2000 mln
Issuance Date 26-Sep-14
Tenor 7 Years
Redemption Date 27-Sep-21
Outstanding Amount -

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

AlBaraka Bank (Pakistan) Limited issued a rated, unlisted, unsecured, and subordinated Modaraba Sukuk in Sep-2014 of PKR 2bln to contribute towards AlBaraka Bank's Tier II capital for capital adequacy ratio as per guidelines set by SBP. The funds so raised were also planned to be utilized in the Bank's normal business operations. The tenor of the instrument was 7 years and carried a profit rate of 6M-KIBOR plus 125bps 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, except common shares.
On September 27, 2021, the bank redeemed in full the entire principal outstanding amount of PKR 143mln along with the profit payment of 6.6mln. The auditor's certificate confirming the redemption has been reviewed in this regard.
Subsequent to the redemption of the Modaraba Sukuk, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of AlBaraka Bank (Pakistan) Limited | Sukuk | Sep-14.

About the Entity
ABPL is currently operating with a network of 179 branches. AlBaraka Islamic Bank B.S.C., Bahrain the majority shareholder (59.13%) in ABPL, is a subsidiary (92%) of AlBaraka Banking Group (ABG). The Board constitutes five representatives of sponsoring groups and three independent directors. Mr Ahmed Shuja Kidwai - the CEO & President - is a professional banker having a long association with ABG. The management team comprises of experienced professionals.

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.