FINCA Microfinance Bank Pakistan (FMBP) has announced that it has secured an eight-year, Rs800 million Tier-II/subordinated bilateral loan facility from Pakistan Microfinance Investment Company (PMIC).
According to a statement issued by (FMBP), the facility marks an inaugural Tier-II transaction by PMIC and will be used by FINCA Pakistan to support its balance sheet expansion.
The facility will contribute towards FINCA’s Tier-II capital for complying with the Capital Adequacy Ratio (CAR) requirement prescribed by the State Bank of Pakistan for microfinance banks. The funds raised will be utilized in FINCA Pakistan’s business operations and will enable the bank to meet financing requirements of over 240,000 borrowers across Pakistan. Most of these loans will be targeted towards individuals running micro, small and medium-sized enterprises.
Zarlasht Wardak, Chair of FINCA Pakistan Board, congratulated both institutions on this landmark transaction. “Pakistan is full of opportunities for microfinance sector and we are very happy that this facility will allow us to farther our mission of financial inclusion and improving access to finance for disadvantaged sections of the economy,” she said.
