FINCA Microfinance Bank Pakistan has secured an 8-year, Rs.800 million Tier II/subordinated bilateral loan facility from Pakistan Microfinance Investment Company (PMIC). The facility marks an inaugural Tier 2 transaction by PMIC and will be used by FINCA Pakistan to support its balance sheet expansion.
The Loan Facility Will Support Lending by FINCA Pakistan
The facility will contribute towards FINCA’S Tier 2 Capital for complying with the Capital Adequacy Ratio (CAR) requirement as prescribed by the State Bank of Pakistan for Microfinance Banks. The funds will be utilized in FINCA Pakistan’s business operations enabling the bank to meet financing requirements of more than 240,000 borrowers across Pakistan. Most of these loans will be targeted towards individuals running micro, small and medium-sized enterprises.
The funds will be utilized in FINCA Pakistan’s business operations enabling the bank to meet financing requirements of more than 240,000 borrowers across Pakistan.
Chair of FINCA Pakistan board Zarlasht Wardak commented, “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.”
PMIC CEO Yasir Ashfaq said, “PMIC is dedicated to promoting financial inclusion across Pakistan. In this regard PMIC has developed and offers a range of financing services to Microfinance Banks and Non-Banking Microfinance Institutions (NBMFIs). With this partnership, PMIC and FINCA Pakistan are aiming to improve the financial inclusion indicators of the country and contribute towards the National Financial Inclusion Strategy.”
Farid Ahmed Khan, Acting CEO FINCA Microfinance Bank said “This loan facility will enable us to expand our product offering across the country while continuing to help the people of Pakistan build assets, create jobs and improve their standard of living.”
FINCA Pakistan has over half a million clients which are serviced by its branchless banking platform and 132 branches across the country. The bank is one of Pakistan’s fastest growing microfinance institutions, increasing its balance sheet by 134% in the last three years.