U Microfinance Bank Limited has announced the successful closure of its Fully Paid-up, Rated, Privately Placed / DSLR Listed, Unsecured, Subordinated, Perpetual, and Non-Cumulative Debt Instrument Additional Tier 1 Capital TFCs of PKR 1,000,000,000.
These TFCs will contribute toward U Bank’s Tier-1 capital for Capital Adequacy Ratio (“CAR”) purposes and for the Bank’s ongoing business operations to maintain its growth momentum while complying with the requirements of SBP.
In an industry first, U Bank has successfully acted as the sole arranger of this instrument. This is a momentous milestone for the microfinance industry, as for the very first time, a microfinance bank has acted as a sole arranger of any instrument issued in the history of Pakistan.
Speaking on this fine achievement, Kabeer Naqvi, President, and CEO of U Bank said
“U Bank has always strived to scale to new heights not only for itself; but also as a service to the microfinance industry. This achievement is a result of sheer hard work, dedication, and commitment from team U Bank; and it is a testament to the potential this sector is capable of achieving.”
“U Bank will continue to innovate and strive to achieve greater progress in order to serve its last-mile customer base; thereby achieving its mission of banking the unbanked customer of this country,” he added.
Kabeer also expressed gratitude to investors and partners; who have been very supportive throughout this journey; and who helped U Bank in achieving this milestone. He also appreciated the role of the central bank in acknowledging U Bank’s unique role as an innovative financial institution.
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