Latest Khushhali Microfinance Bank News
Jun 23, 2021
Pakistan Microfinance Investment Company Limited (PMIC) has successfully closed its second advisory and arrangement mandate for Khushhali Micro Finance Bank Limited (KMBL). The KMBL has issued unsecured, subordinated, privately placed Tier II Term Finance Certificates of Rs. 600 million, where the entire amount is provided by the PMIC. This financing facility aims to support growth in lending operations of the KMBL, and contribute towards the bank’s additional Tier II Capital for strengthening the Capital Requirement and Capital Adequacy Ratio (CAR) prescribed by the State Bank of Pakistan (SBP) for Microfinance Banks. It also furthers the PMIC’s mission to work with sector stakeholders to meet the unmet demand for microfinance in the country. The investor agreement was signed by the PMIC Chief Executive Officer (CEO), Yasir Ashfaq, and the KMBL President and CEO, Ghalib Nishtar. Speaking on the occasion, Ashfaq said, “This transaction is a continuation of PMIC’s efforts to channel liquidity to sector stakeholders with the overarching aim to meet the unmet demand for financial services through different financial instruments”. He said, “Some of the institutions in the microfinance sector, especially after COVID19, require tier I and tier II capital; PMIC would work with such institutions to meet their demand. PMIC is currently working on Social Impact Fund, Challenge Fund and other initiatives that would help in meeting demand of the sector and reduce cost of delivery”. Ghalib Nishtar, the President and CEO of KMBL commented “This transaction will further strengthen our relationship with PMIC. The facility will help KMBL to enhance access to finance to women and youth in the country, support enterprises and job creation and enable KMBL to reach the underserved areas of the country. We aim to further extend our partnership with PMIC to strengthen efforts to benefit the underserved communities in the country and increase financial inclusion.” The PMIC is a wholesale finance entity and an important pillar of the National Financial Inclusion Strategy of Pakistan. It focuses on promoting poverty alleviation initiatives through Microfinance Institutions and Banks (MFIs & MFBs), and improving employment and livelihood opportunities for Pakistan’s marginalized segments, especially women and the youth.