PACRA Maintains Entity Ratings of Pakistan Microfinance Investment Company Limited : AsiaNet-Pakistan

PACRA Maintains Entity Ratings of Pakistan Microfinance Investment Company Limited

June 21, 2018 | General Business News | Share:

Lahore, June 21, 2018 (PPI-OT): The ratings of Pakistan Microfinance Investment Company Limited (PMIC) reflect its robust equity base, well-conceived business plan and a strong ownership structure. Pakistan Poverty Alleviation Fund (PPAF), Karandaaz Pakistan – funded by UK’s Department for International Development (DFID) – and KfW, a German government-owned development bank – have contributed to the institution’s capital in addition to providing subordinated loans.

PMIC is distinctly positioned as an apex lending institution for the microfinance sector, in addition to its role to develop the sector and facilitate the development of the eco-system. PMIC’s target market includes 33 institutions – 22 MFIs and 11 MFBs. Of these, the company has developed relationships with 19 MFIs and the loan portfolio stood at PKR~14bln as of end-March’18. Additionally, PMIC is in the process of developing lending relationships with MFBs. PMIC plans on expanding its microfinance lending portfolio to PKR~40bln by 2020.

PMIC has also undertaken interventions to support capacity building in the sector under its Microfinance Plus initiatives targeted towards Agri-value chains, enterprise development, micro-insurance, renewable energy, among others. PMIC would fund its lending operations through its own equity base, subordinated loans from sponsors, and market borrowings – that would gradually form a sizable portion. PMIC’s operations are designed on efficient lines with a strong control environment. Notable developments in the overall structure and risk environment alongside operational efficiencies are yielding healthy revenues. The trend is expected to sustain, going forward.

The performance of the company will be monitored vis-à-vis the planned targets. In the backdrop of expanding loan portfolio, the company’s ability to sustain the credit quality is considered important; use of rigorous control mechanism remains central to the company’s performance and hence the ratings. Stability and cohesiveness of the management team is also important for realization of business strategy.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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Category: General Business News