On Monday, a Pakistani microfinance institution announced the successful launch of term finance certificates (TFC) amounting to Rs1 billion ($4.9 million). TFCs 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 sought to set new standards not only for itself, but also for the microfinance industry as a whole. This achievement is the result of the hard work, dedication, and commitment of the U Bank team, and is a testament to the sector’s potential.
U 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 provides a wide range of microfinance loans, deposit products, and branchless banking solutions to people.
“U Bank is committed to innovating and progressing to serve its last-mile customers and fulfil its mission of providing financial access to underserved communities in this country,” said its president and CEO Kabeer Naqvi.
He also thanked the investors and partners who helped his bank achieve the milestone.
Naqvi praised the central bank for acknowledging U Bank’s role as an innovative financial institution