KSE ap­proves list­ing of Rs 3,000m Soneri Bank's TFC

The Pak Banker - - FRONT PAGE - Muham­mad Yasir

The man­age­ment of Karachi Stock Ex­change (KSE) has ap­proved the ap­pli­ca­tion for list­ing and quo­ta­tion of sec­ond is­sue of rated, listed, un­se­cured and sub­or­di­nated Term Fi­nance Cer­tifi­cates (TFCs) of Rs 3,000 mil­lion of Soneri Bank Lim­ited on the com­ple­tion of for­mal­i­ties un­der List­ing of Com­pa­nies and Se­cu­ri­ties Reg­u­la­tions of Ex­change.

The trad­ing in the TFCs of the bank will start at KSE from Wed­nes­day (to­day) whereas the trans­ac­tions will take place in the said TFCs of the bank through Bonds Au­to­mated Trad­ing Sys­tem (BATs) and shall be set­tled on T +1 set­tle­ment ba­sis. The TFCs of the bank have al­ready been de­clared el­i­gi­ble se­cu­rity by the Cen­tral De­pos­i­tory Com­pany of Pak­istan Lim­ited (CDC) and all the trans­ac­tions shall be set­tled through the Na­tional Clear­ing Com­pany of Pak­istan, which has as­signed the Se­cu­rity Sym­bol as "SNBLTFC2".

The tenor of the in­stru­ment would be eight years end­ing in 2023 with ex­pected profit rate would be based on 6M-KIBOR Plus 135bps p.a. payable semi-an­nu­ally in ar­rears whereas the ma­jor prin­ci­pal re­pay­ment (99.7%) would be in bullet form at ma­tu­rity in the 96th month from the date of is­sue. Ac­cord­ing to the of­fi­cial re­ports, Soneri Bank Lim­ited would re­tain the call op­tion on the in­stru­ment which may be ex­er­cised, in part or full, af­ter five years of is­sue.

Term Fi­nance Cer­tifi­cate (TFCs) is­sued by Soneri Bank Lim­ited in re­cent months re­ceived over­whelm­ing re­sponse to get over­sub­scribed by 1.3 times to gen­er­ate value of Rs 805 mil­lion in­stead of tar­get amount of Rs 750 mil­lion.

The de­tails is­sued by TFC man­ager Arif Habib Lim­ited, the banks re­ceived to­tal num­ber of 10 ap­pli­ca­tions through six var­i­ous banks out of to­tal 12 com­mer­cial banks par­tic­i­pated in the TFC float. The ad­di­tional amount of Rs 55 mil­lion was showed that TFC of the bank was seen highly at­trac­tive by the in­vestors which will bode well for the bank to ma­te­rial the float deal of Rs 3 bil­lion. The re­cep­tion of more than tar­geted amount was one of the re­sults of com­pe­ti­tion among the var­i­ous com­mer­cial banks which is health­ier within the bank­ing in­dus­try. Soneri Bank floated cer­tifi­cates of Rs 750 mil­lion as part of its Rs 3 bil­lion is­suance of Term Fi­nance Cer­tifi­cate (TFC) for the public of­fer­ing held on July 7 and 8 af­ter it re­ceived a green sig­nal from the State Bank of Pak­istan (SBP).

Ear­lier, the bank has re­ceived Pre-IPO sub­scrip­tion which has been dis­closed un­der other li­a­bil­ity pend­ing IPO, reg­u­la­tory ap­provals for which are un­der­way. This in­cludes amount of Rs. 2.25 bil­lion re­ceived from in­vestors as Pre-IPO sub­scrip­tion of the bank's sec­ond rated, un­se­cured, sub­or­di­nated and listed term fi­nance cer­tifi­cates is­sue. The man­age­ment's key fo­cus would be to en­hance vol­umes in trade busi­ness to sup­port non-fund rev­enues. At the same time, the pro­ceeds from the pro­posed TFCs is­sue would be uti­lized to sup­port busi­ness oper­a­tions.

This is­sue would be sec­ond such is­suance by Soneri Bank; the first TFC worth was Rs 1.200 bil­lion for eight years, is­sued in 2005 and was re­paid in 2013.

Soneri Bank is one of the best per­form­ing mid-tier banks in the coun­try ful­fill­ing fi­nan­cial reg­u­la­tory re­quire­ment of paid-up cap­i­tal stand­ing at Rs 11 bil­lion with Cap­i­tal Ad­e­quacy Ra­tio (CAR) stand­ing at 10 per­cent. SBL has posted a profit be­fore tax (PBT) of Rs 1.913.31 bil­lion and profit af­ter tax (PAT) of Rs 1.107.61 bil­lion for the half-year that ended on June 30. The bank's rev­enue in­creased by 24.98% to Rs 5.42 bil­lion against the last year's fig­ure of Rs 4.33 bil­lion, whereas the ex­penses in­creased just by 3.88%.

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