The Pakistan Credit Rating Agency Limited
19-Jul-24
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Withdraws the Rating of Khushhali Microfinance Bank Limited | PPTFC | PKR 1.5bln | Jun-22
| Rating Type | Debt Instrument | |
|
Current (19-Jul-24 ) |
Previous (19-Jan-24 ) |
|
| Action | Withdraw | Downgrade |
| Long Term | - | C |
| Short Term | - | - |
| Outlook | Negative | |
| Rating Watch | - | Yes |
The Bank issued the PPTFC-additional Tier-I, amounting to PKR 1,500mln. In line with the applicable regulations, the TFCs were mandatorily to be converted into common equity. Accordingly, after getting approvals from shareholders and the Board, and after obtaining regulatory approval, the Bank converted the ADT- I instrument of PKR 1.5bln into Common Shares of the Bank. The conversion was made at a pre-determined price in accordance to the laws as applicable in Pakistan.
Subsequent to the conversion, PACRA has withdraw the rating opinion.
About
the Entity
Khushhali Microfinance Bank Limited ("KMBL" or the "Bank") incorporated in 2000 with proclamation of Khushhali Ordinance by Government of Pakistan and subsequently, transformed into a public limited company in 2008. KBML is owned by United Bank Limited (30%), Rural Impulse Fund (24%), Responsibility Global MF (20%), Shore cap II Limited (14%), ASN-NOVIB (10%) and Bank AL-Habib (2%).
About
the Instrument
KMBL issued Rated, Privately Placed Listed/DSLR, Unsecured, Subordinated, Tier I Term Finance Certificates of PKR 1,500mln with semi-annual profit payable at 6MK+4% to contribute towards the bank’s Tier I capital to support the Capital Adequacy. The instrument is subordinated to the payment of principal and profit to all other claims except common shares.