FINCA bank secures loan

Lahore: FINCA Microfinance Bank Pakistan has secured an eight-year, Rs800 million Tier II / subordinated bilateral loan facility from Pakistan Microfinance Investment Company (PMIC), a statement said on Wednesday.

The facility marks an inaugural Tier 2 transaction by PMIC to be used by FINCA Pakistan to support its balance sheet expansion, it added. The facility will contribute towards FINCA’S Tier II capital for complying with the Capital Adequacy Ratio (CAR) requirement prescribed by the State Bank of Pakistan for microfinance banks.

The funds raised will be utilised in FINCA Pakistan’s business operations and would enable the bank to meet financing requirements of over 240,000 borrowers across the country.

Most of these loans will be targeted towards individuals running micro-, small and medium-sized enterprises, it said.