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 towards U Bank’s Tier-1 capital for Capital Adequacy Ratio (“CAR”) purposes and for the Bank’s on-going 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 is a testament of 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 for acknowledging U Bank’s unique role as an innovative financial institution.