Silkbank gets SBP’s nod to issue Rs2bln TFC

KARACHI: Silkbank has secured central bank’s nod and will soon be issuing Rs2.0 billion worth of term finance certificates (TFCs) for complying with the capital adequacy ratio (CAR) requirement, a bourse filing said.

The State Bank of Pakistan (SBP) has granted final approval to the bank for issuance of rated, privately placed, unsecured and subordinated TFCs of Rs2.0 billion inclusive of green shoe option of up to Rs500 million subject to the compliance with relevant laws, rules and regulations.

The TFC issue will contribute towards the Silkbank's Tier-II capital for complying with the CAR requirement prescribed by the SBP under its Basel-III framework, and the funds so raised will be utilised towards the bank's business operations.