Press Release

JCR-VIS Assigns Preliminary Rating to Proposed Tier 2 Sukuk by Meezan Bank Limited

Karachi, June 29, 2016: JCR-VIS Credit Rating Company Limited has assigned preliminary rating of ‘AA-’ (Double A Minus) to the planned Tier 2 Sukuk issue of Meezan Bank Limited (MBL). Outlook on the assigned rating is ‘Stable’.

MBL is in process of issuing a regulatory compliant unsecured, subordinated privately placed Tier 2 Sukuk amounting up to Rs. 6.0b (inclusive of Green Shoe Option of Rs. 2.0b). The Sukuk is structured based on the principles of Modaraba and will have a tenor of 10 years. Purpose of Sukuk issuance is to support the bank in strengthening its overall capitalization levels.

At end-March 2016, MBL had an asset base of Rs. 541.3b and the equity of the Bank stands at Rs 25.6b. Rating draws strength from the standalone financial profile of MBL reflected by its strong liquidity profile, sound asset quality indicators and increasing core earnings ensuring high certainty of timely repayments.


For further information on this rating announcement, please contact the undersigned (Ext: 501) or Mr. Mohammed Khalid Ali (Ext: 508) at 35311861-70 (10 lines) or fax to 35311873.



Javed Callea
Advisor

Applicable Rating Criteria: PRIMER - Commercial Banks (November 2015)
http://jcrvis.com.pk/Images/Meth-CommercialBanks201511.pdf

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