Soneri Bank Limited’s (PSX: SNBL) privately issued Rs. 4 billion bond will go live for trade on the Pakistan Stock Exchange on Wednesday, June 7.
The bond has a ten-year maturity date of December 26, 2032, and its certificate will have a face value of Rs. 100,000 apiece.
The loan instrument is expected to contribute to the bank’s Tier-II capital, which is the second or supplementary tier of capital that is less safe than Tier-I capital. It will be used in the entity’s ongoing banking activities, according to the term sheet of the offer.
After the TFC is listed on the stock exchange, only qualified institutional traders will be permitted to buy it.
If SNBL meets the capital adequacy ratio, minimum capital requirement, and leverage ratio at the conclusion of a given period, the bond will offer a floating rate of 6-month KIBOR + 170 basis points.
The issue, which legally took place on December 26, 2022, was attended by 33 enterprises, including commercial banks, microfinance institutions, pension funds, provident funds, textile mills, insurance companies, and energy production firms.
MCB Bank and United Bank Limited were the major investors, each investing Rs. 600 million in the Rs. 4 billion debt product. HBL Asset Management Company Limited followed, investing Rs. 520 million, or 13 percent of the entire bond amount.
Soneri Bank exercised the call option on another Rs. 3 billion bond issued in July 2015 last year. In other words, the commercial lender exercised its debt issuer’s right to “call” or buy back its listed bond before it matured, which had an eight-year maturity and paid a semi-annual markup of 6-Month KIBOR + 1.35 percent.