ISLAMABAD: A Pakistani microfinance institution on Monday announced it had successfully launched term finance certificates (TFC) amounting to Rs1 billion ($4.9 million).
The certificates are corporate debt instruments with varying maturity which are sometimes issued by companies to generate finances.
According to a statement issued by U Microfinance Bank Ltd. (U Bank), the institution has successfully acted as the sole arranger of the instrument.
“This is a momentous milestone for the microfinance industry, as for the very first time, a microfinance bank has acted as a sole arranger of any instrument issued,” said the statement.
“U Bank has always strived to scale new heights not only for itself but also as a service to the microfinance industry,” it continued. “This achievement is a result of sheer hard work, dedication and commitment from team U Bank and is a testament of the potential this sector is capable of achieving.”
The bank is a wholly owned subsidiary of Pakistan Telecommunication and Etisalat Company with a network of over 200 branches across 183 cities and rural areas.
It has been providing wide range of microfinance loans, deposit products, and branchless banking solutions to people.
“U Bank will continue to innovate and strive to achieve greater progress in order to serve its last mile customer base, thereby achieving its mission of banking the unbanked customer of this country,” its president and CEO Kabeer Naqvi said.
He also thanked the investors and partners who helped his bank achieve the milestone.
Naqvi appreciated the central bank for acknowledging U Bank’s role as an innovative financial institution.
