FINCA Microfinance Bank in Pakistan issues $14 million USD bond offering
Bond Will Fund On-lending to Small Businesses
LAHORE, Pakistan and WASHINGTON, Oct. 5, 2017 /PRNewswire/ -- FINCA Microfinance Bank announced the registration of PKR 1.5 billion bond (equivalent to USD 14.2 million), furthering its strategy of diversifying its funding base to promote financial inclusion. This is the first bond offering for FINCA Microfinance Bank in Pakistan and the denomination of each electronic instrument will be PKR 100,000. FINCA expects that the successful placement of this offering will allow it to continuously access Pakistan's capital markets in the future.
These instruments will be registered with the Central Depository Company (CDC) and will be traded electronically. FINCA Microfinance Bank will have the option of drawing the entire amount in a lumpsum or in three tranches at PKR 500 million each over a nine-month availability period. The tenor of the bond is 5 years.
FINCA's bond offerings are attracting worldwide attention and interest from the investment community, including recent offerings from FINCA's Nicaragua and Armenia subsidiaries. FINCA Impact Finance (FIF), which operates 21 banks and microfinance institutions across the world, is diversifying its sources of funding and will use the proceeds of these bonds to broaden its financial products and services.
FINCA Microfinance Bank has operated in Pakistan for more than four years and is one of the leading microfinance banks in the country, serving 500,000 clients through 100 locations. It is the first microfinance bank in Pakistan to receive Smart Certification, recognizing its long-standing commitment to client protection. It also recently launched a first-of-its-kind mobile wallet, SimSim.
Andrée Simon, CEO of FINCA Impact Finance, said, "The success of this bond offering is a clear testament to the strength of FINCA Impact Finance and our commitment to expand access to responsible financial services in Pakistan and around the world."
Roman Hingorani, CFO for FINCA Impact Finance, said, "FINCA Impact Finance is making tremendous strides in diversifying our funding base with bond offerings in three countries. We've moved from a heavy reliance on international borrowings to more local funding sources, helping us manage our foreign exchange and geographic risks. For customers around the globe, this reinforces our role as a reliable banking partner."
About FINCA Impact Finance
FINCA Impact Finance is a network of 21 microfinance institutions and banks that provides socially responsible financial services and enables low-income individuals and communities to invest in the future. For more information, visit www.FINCAImpact.com.
SOURCE FINCA Impact Finance
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