Press Release

Rating of TFC issued by Habib Bank Limited

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Karachi, Dec 17, 2015: JCR-VIS Credit Rating Company Limited has finalized the rating of ‘AAA’ (Triple A) assigned to the planned Term Finance Certificate (TFC) issue of Habib Bank Limited (HBL). Outlook on the assigned rating is ‘Stable’.

HBL is in the process of issuing unsecured, subordinated Basel 3 compliant Tier 2 TFCs amounting up to Rs. 10b (inclusive of Green Shoe Option of Rs. 2.5b). The TFCs will have a tenor of 10 years and will be listed on Over-The-Counter Market of the Karachi Stock Exchange Limited. The issue will be governed by SBP guidelines regarding call option, loss absorbency and lock-in-clause. The planned issue will facilitate the bank in further enhancing capitalization levels and achieving its growth objectives. The assigned rating to the TFC reflects the strong risk profile of HBL and very high certainty of timely payments.

At end-September 2015, HBL had an asset base of Rs. 1.98trillion and reported Capital Adequacy Ratio of 15.47%. Rating also incorporates HBL’s strong liquidity profile, robust profitability & asset quality indicators and a sound governance infrastructure.

For further information on this rating announcement, please contact the undersigned (Ext: 517) or Mr. Javed Callea (Ext: 501) 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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2015 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