Press Release

JCR-VIS assigns rating to Pakistan’s First Basel 3 compliant Tier 1 Sukuk by Meezan Bank Limited

Karachi, June 05, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned preliminary rating of ‘AA-’ (Double A Minus) to Meezan Bank Limited’s (MBL) proposed Basel 3 compliant Tier-1 Sukuk. Outlook on the assigned rating is ‘Stable’. Rating will be finalized upon review of signed legal documents.

MBL is in the process of issuing Pakistan’s first privately placed/ OTC Listed, perpetual, unsecured, subordinated, non-cumulative and contingent convertible Shariah compliant Sukuk amounting up to Rs. 7.0b. The issue proceeds will contribute towards the bank’s additional Tier-1 (ADT-1) capital and will be utilized towards enhancement of the bank’s business operations. MBL’s ADT-1 instrument will rank ahead of claims of ordinary shareholders. Ratings also reflect relative risk of the ADT-1 instrument including profit servicing from only earnings for the year, conversion feature in the event of pre-specified trigger events, lock-in clause and point of non-viability in terms of regulatory requirements.

The assigned instrument rating draws comfort from the sound risk profile of MBL. JCR-VIS has assigned entity ratings of AA+/A-1+ (Double A Plus/A-One Plus) to MBL indicating high credit quality and adequate protection factors. The assigned ratings reflect the Bank’s dominant position in the Islamic Banking Industry, increasing market share, healthy customer franchise and strong financial risk profile.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at 021-35311861-70 or fax to 021-35311872-3.

Javed Callea

Applicable rating criterion: Commercial Banks Methodology -March 2018

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2018 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited