Press Release

JCR-VIS finalizes rating of Basel 3 Tier 1 instrument by Bank Alfalah Limited

Karachi, January 17, 2018: Upon review of signed legal documents, JCR-VIS Credit Rating Company Limited has finalized the rating of ‘AA-’ (Double A Minus) assigned to Bank Alfalah Limited’s (BAFL) Basel 3 Tier-1 debt instrument. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on 08th November 2017.

BAFL is in the process of issuing a listed, perpetual, unsecured, subordinated, non-cumulative and contingent convertible debt instruments amounting up to Rs. 7.0b (inclusive of Green Shoe Option of Rs. 2.0b). The bank has already raised Rs. 6.3b in the pre-IPO phase with the remaining planned to be raised through IPO. The issue proceeds will contribute towards the bank’s additional Tier-1 capital and will be utilized towards enhancement of the bank’s business operations. BAFL’s tier-1 instrument will rank ahead of claims of ordinary shareholders but below the bank's senior creditors, including depositors and holders of Tier 2 TFC.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 35311861-70 (10 lines) or fax to 35311873.

Jamal Abbas Zaidi

Applicable Rating Criteria: PRIMER – Commercial Banks (November 2015)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited