Samba Bank to float Rs5bn TFC to spread operations
- It is pertinent to mention that Samba Bank is part of the Saudi Financial Group (SFG) that is based in the Kingdom of Saudi Arabia, and has some 40 branches operating in the major cities of Pakistan.
The Board of Directors (BoD) of Samba Bank will float Rs5 billion Term Finance Certificate (TFC), the funds will be used to expand the bank’s business operations in Pakistan.
In a filing to the bourse, the Samba Bank said: “We wish to inform you that, the Board of Directors of Samba Bank Limited ("Bank") have approved the issuance of Additional Tier 2 Capital Term Finance Certificates of up to PKR 5,000 million (the "TFC" or "TFC Issue") as an instrument of redeemable capital under Section 66(1) of the Companies Act, 2017 and as outlined by the State Bank of Pakistan ("SBP") under BRPD Circular No.6 dated August 15, 2013 (as amended from time to time) read with all relevant rules, regulations, circulars, and approvals of SBP subject to completion of all necessary formalities and obtaining of all requisite approvals.
“The fund so raised via the TFC will be utilized in business operations as permitted by Memorandum & Articles of Association of the Bank. The TFC will contribute towards the Bank's Tier 2 Capital for complying with the Capital Adequacy Ratio requirements prescribed by SBP,” it added.
It is pertinent to mention that Samba Bank is part of the Saudi Financial Group (SFG) that is based in the Kingdom of Saudi Arabia and has some 40 branches operating in the major cities of Pakistan.
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