KMBL issues Rs600mln TFCs

KARACHI: Khushhali Microfinance Bank Limited (KMBL) has issued unsecured, subordinated, privately placed, Tier II Term Finance Certificates (TFCs) worth Rs600 million, with the amount provided entirely by Pakistan Microfinance Investment Company Limited (PMIC), a statement said on Tuesday.

This financing facility aims to support growth in lending operations of KMBL and contribute towards the bank's additional Tier II Capital for strengthening capital requirement and Capital Adequacy Ratio (CAR) prescribed by the State Bank of Pakistan for microfinance banks.

The investor agreement was signed by Yasir Ashfaq, chief executive officer PMIC and Ghalib Nishtar, CEO KMBL.

Speaking on the occasion, Yasir Ashfaque said, “This transaction is a continuation of PMIC’s efforts to channel liquidity to sector stakeholders with the overarching aim to meet the unmet demand for financial services through different financial instruments”.

“Some of the institutions in the microfinance sector, especially after COVID19, require tier I and tier II capital; PMIC would work with such institutions to meet their demand.” Ashfaque added that PMIC was currently working on the Social Impact Fund, Challenge Fund and other initiatives that would help in meeting demand of the sector and reduce cost of delivery.

Ghalib Nishtar CEO KMBL said, “The facility will help KMBL to enhance access to finance to women and youth in the country, support enterprises and job creation and enable KMBL to reach the underserved areas of the country.”