Karachi November 10 2022: Habib Bank Limited to issue Additional Tier-I capital through Fully Paid-up, Rated, Privately Placed, Perpetual, Unsecured, Subordinated, Non-cumulative and Contingent Convertible Term Finance Certificates (TFCs) in aggregate of up to Rs. 10 billion, in a single or multiple issues of redeemable capital, inclusive of a green shoe option of Rs. 5 billion, subject to regulatory approvals.
TFCs may be listed on the Pakistan Stock Exchange (PSX) under the Privately Placed Debt Securities Listing Regulations (DSLR) subject to Chapter 5C of the PSX Rulebook if required.
Moreover in the event the SBP exercises its option to convert the TFCs into ordinary shares of the Bank upon the occurrence of a Point of Non-Viability (“PONV”), such ordinary shares shall be issued other than by way of rights as per the applicable provisions of the Companies Act, 2017 (“Additional Shares”), in accordance with the instructions of the State Bank of Pakistan (“SBP”) under the ‘Instructions for Basel III Implementation in Pakistan’ (“Basel III Rules”) issued under BPRD Circular No. 06 dated August 15, 2013, as amended from time to time. The issuance of such Additional Shares shall be based on the market value of the shares of the Bank on the date of trigger of PONV as declared by the SBP and shall be subject to a maximum of 113,871,871 ordinary shares.
However, the issuance of the Additional Shares shall be subject to obtaining all other necessary approvals including but not limited to the approval of the Securities and Exchange Commission of Pakistan, pursuant to Section 83 and other applicable provisions of the Companies Act, 2017, and rules and regulations of the SBP, as may be applicable.
