Press Release

JCR-VIS Assigns Preliminary Rating to TFC-V of Askari Bank Limited

Karachi, September 23, 2014: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned preliminary instrument rating of ‘AA-’ (Double A Minus) to 5th (fifth) Issue of Term Finance Certificate (TFC-V) to be issued by Askari Bank Limited (AKBL). AKBL has outstanding entity ratings of ‘AA/A-1+’ (Double A/A-One Plus). Outlook on the assigned ratings is ‘Stable’.

AKBL is issuing unsecured and subordinated Term Finance Certificate (TFC-V) of up to PKR 4,000 Million to strengthen its Tier-2 capital. The instrument will have a tenor of 10 years, with a Call Option that is exercisable on the 10th redemption date or any redemption date thereafter, subject to the approval of State Bank of Pakistan (SBP) and with not less than 30 days prior notice to the Trustee and the investors. The Call Option, once announced, will not be revocable. The issue is structured to redeem 99.62% of the principal amount in year 10 in two equal semi-annual installments. The instrument carries profit rate of average six months KIBOR plus a spread of 120 bps. The terms of the Issue will be in line with the regulatory requirements.

For further information on this rating announcement, please contact Ms. Sobia Maqbool, CFA at 021-35311861-70 or Mr. Maimoon Rasheed at 042-36610681-84.

Jamal Abbas Zaidi
Deputy CEO

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 2014 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