Bank of Punjab to Raise Rs. 10 Billion Through Term Finance Certificate

Bank of Punjab has structured a Term Finance Certificate to raise Rs. 10 billion mainly for meeting the additional requirement of Tier-I Capital. In this regard, the shareholders of Bank of Punjab resolved the issuance of the proposed Additional Tier-I capital by the bank in the amount up to Rs. 10 billion, inclusive of a green shoe option of Rs. 5 billion, the Term Finance Certificates (TFC) Issue. The shareholders further resolved that the TFCs may be converted into ordinary shares of the bank if so directed by the State Bank of Pakistan (SBP) on the occurrence of a point of non-viability as determined by SBP or upon the occurrence of a pre-specified trigger point pursuant to Basel III Capital Instructions, or due to an inability to exercise the lock-in clause or non-cumulative features of the TFCs, on such terms and conditions as may be determined by SBP. The conversion would take place at a price equivalent to the market value of the shares of the Bank on the date of the trigger of the point of non-viability as declared by SBP. It was further resolved that the issuance of such shares upon the occurrence of any of the conversion events shall be subject to a cap of over one billion additional ordinary shares being issued. The bank currently has a network of 664 online branches, including 115 Taqwa Islamic Banking Branches and 16 sub-branches. Further, the bank has a network of 651 ATMs providing 24/7 banking services to customers. Besides that, the bank is also offering branchless banking, mobile banking, internet banking, and cash management services to its clients.