Islamabad November 15 2022: Soneri Bank is planning to issue rated, listed, unsecured, subordinated, ten years tenured “Soneri Bank Limited | Tier II Capital TFC” with an issue size of PKR 4 billion bearing exercisable call option after five years of the issue date.
Previously, the bank had issued a PKR 3 billion Tier-II TFC in 2015 and a PKR 4 billion Tier-I TFC in 2018. The current issue will constitute of PKR 4 billion Tier-II TFCs.
The TFC will be subordinated to the payment of principal and profit, to other indebtedness of the Bank, including deposits, but will rank pari passu with other Tier 2 instruments and superior to Additional Tier 1 instruments.
Neither profit nor principal will be payable in respect of TFC, if such payment will result in a shortfall in the bank’s Minimum Capital Requirement (MCR) or CAR. The bank may call the TFCs, with prior approval of SBP, any time after five years from the date of issue. The TFCs shall, if directed by the SBP, be fully and permanently converted into ordinary shares and/or have them immediately written off (partially or in full) upon the PONV Trigger Event.
The Issue amount will contribute towards the Issuer’s Tier II Capital for CAR and have a floating rate coupon priced @6MK+1.70%. The instrument will be redeemed 0.36% of the issue amount during the first 9 years after the Issue Date and the remaining issue amount of 99.64% in two equal semi-annual installments of 46.82% each in the last year.
About the Entity
SNBL, established in 1991, operates with a network of 360 plus branches including 35 Islamic banking branches, 15 Islamic banking windows and 1 sub-branch. The Bank’s primary sponsors are the Feerasta Family who collectively own majority share in SNBL. The Feerasta Family has diverse commercial interests ranging from manufacturing, exporting, banking and trade financing. The overall control of the bank vests with an eight-member board of directors comprising five non-executive, two independent and one executive director (CEO).
