JCR-VIS Assigns Rating To Pakistan's First Basel 3 Compliant Tier 1 Sukuk By Meezan Bank Limited

JCR-VIS Credit Rating Company Limited has assigned preliminary rating of double A minus to Meezan Bank Limited's (MBL) proposed Basel 3 compliant Tier-1 Sukuk.

KARACHI, (UrduPoint / Pakistan Point News - 6th Jun, 2018 ) :JCR-VIS Credit Rating Company Limited has assigned preliminary rating of double A minus to Meezan Bank Limited's (MBL) proposed Basel 3 compliant Tier-1 Sukuk.

The outlook on the assigned rating is `Stable'. Rating will be finalized upon review of signed legal documents, said press release on Wednesday.

MBL is in the process of issuing Pakistan's first privately placed/ OTC Listed, perpetual, unsecured, subordinated, non-cumulative and contingent convertible Shariah compliant Sukuk amounting up to Rs 7 billion.

The issue proceeds will contribute towards the bank's additional Tier-1 (ADT-1) capital and will be utilized towards enhancement of the bank's business operations. MBL's ADT-1 instrument will rank ahead of claims of ordinary shareholders.

Ratings also reflect relative risk of the ADT-1 instrument including profit servicing from only earnings for the year, conversion feature in the event of pre-specified trigger events, lock-in clause and point of non-viability in terms of regulatory requirements.