ISLAMABAD: Pakistan Microfinance Investment Company Limited (PMIC) is a wholesale finance entity and an important pillar of National Financial Inclusion Strategy of Pakistan, said a press release. The PMIC focuses on promoting poverty alleviation initiatives through Microfinance Institutions and Banks (MFIs & MFBs) and improving employment and livelihood opportunities for marginalized segments in the country especially women and youth.
Furthering its mission, the PMIC has successfully closed its second advisory and arrangement mandate for Khushhali Micro Finance Bank Limited (KMBL).
The KMBL has issued unsecured, subordinated, privately placed, Tier-II Term Finance Certificates of PKR 600mn, where entire amount is provided by PMIC. This financing facility aims to support growth in lending operations of KMBL and contribute towards bank's additional Tier II Capital for strengthening Capital Requirement and Capital Adequacy Ratio (CAR) prescribed by SBP for Microfinance Banks.
It also furthers PMIC's mission to work with sector stakeholders to meet the unmet demand for microfinance in the country. The investor agreement was signed by Yasir Ashfaq, Chief Executive Officer PMIC and Ghalib Nishtar, President and Chief Executive Officer KMBL.
Speaking on the occasion, Yasir said, "This transaction is a continuation of PMIC's efforts to channel liquidity to sector stakeholders with the overarching aim to meet the unmet demand for financial services through different financial instruments. Some of the institutions in the microfinance sector, especially after Covid-19, require tier I and tier II capital; PMIC would work with such institutions to meet their demand.
PMIC is currently working on Social Impact Fund, Challenge Fund and other initiatives that would help in meeting demand of the sector and reduce cost of delivery".
Ghalib Nishtar, President and Chief Executive Officer KMBL commented, "This transaction will further strengthen our relationship with PMIC. The facility will help KMBL to enhance access to finance to women and youth in the country, support enterprises and job creation and enable KMBL to reach the underserved areas of the country. We aim to further extend our partnership with PMIC to strengthen efforts to benefit the underserved communities in the country and increase financial inclusion."-PR
Copyright Business Recorder, 2021
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