FINCA secures Rs800m Tier-II facility

KARACHI: FINCA Microfinance Bank Pakistan announced that it has secured an 8-year, Rs800 million Tier II/subordinated bilateral loan facility from Pakistan Microfinance Investment Company (PMIC). The facility marks an inaugural Tier 2 transaction by PMIC and will be used by FINCA Pakistan to support its balance sheet expansion.

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 utilized in FINCA Pakistan's business operations and will enable the bank to meet financing requirements of over 240,000 borrowers across Pakistan. Most of these loans will be targeted towards individuals running micro, small and medium-sized enterprises.

Zarlasht Wardak, Chair of FINCA Pakistan board, congratulated both institutions on this landmark transaction. "Pakistan is full of opportunities for microfinance sector and we are very happy that this facility will allow us to farther our mission of financial inclusion and improving access to finance for disadvantaged sections of the economy", she said.

Speaking on the occasion, PMIC CEO Yasir Ashfaq said, "PMIC is dedicated to promoting financial inclusion across Pakistan. In this regard PMIC has developed and offers a range of financing services to Microfinance Banks and NonBanking Microfinance Institutions (NBMFIs)." Farid Ahmed Khan, Acting CEO FINCA Microfinance Bank said "