JCR-VIS Preliminary Rating to Proposed Tier 2 Sukuk by Meezan Bank Limited: Revision in Amount to Rs. 7.0 billion
Karachi, August 31, 2016 (PPI-OT):JCR-VIS Credit Rating Company Limited re-confirms the assigned preliminary rating of ‘AA-’ (Double A Minus) to the planned Tier 2 Sukuk issue of Meezan Bank Limited (MBL). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on 29th June 2016.
MBL is in process of issuing a regulatory compliant unsecured, subordinated privately placed Tier 2 Sukuk. The amount of Sukuk issue previously envisaged at Rs. 6b, has now been placed at Rs. 7.0b. The Sukuk is structured based on the principles of Modaraba and will have a tenor of 10 years. Purpose of Sukuk issuance is to support the bank in strengthening its overall capitalization levels.
At end-June 2016, MBL had an asset base of Rs. 571.4b and the equity of the Bank stands at Rs 27b. Rating draws strength from the standalone financial profile of MBL reflected by its strong liquidity profile, sound asset quality indicators and increasing core earnings ensuring high certainty of timely repayments.
For more information, contact:
Ms. Sobia Maqbool
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Category: General Business News