Karachi: Askari Bank Limited has announced its decision to exercise the full Call Option on its PKR 6 billion Tier II term finance certificates (TFCs), a move approved by the bank's Board of Directors on April 29, 2025. The financial institution's action aligns with the stipulations outlined in the Trust Deed dated December 24, 2019, executed between Askari Bank and Pak Oman Investment Company Limited as the trustee.

The Call Option, which pertains to the Rated, Subordinated, and Unsecured TFCs issued by Askari Bank, has received the necessary endorsement from the State Bank of Pakistan. The central bank granted its approval in correspondence dated July 7, 2025. This decision signifies a significant development for stakeholders involved with the TFCs.

According to information available from the Pakistan Stock Exchange (PSX), the exercise of the Call Option will adhere to the terms and conditions set forth in the Trust Deed and related documentation. The bank is expected to communicate the necessary notices to the trustee, TFC holders, and fulfill other statutory requirements in due course.

This financial maneuver by Askari Bank is underpinned by regulatory compliance with Sections 96 and 131 of the Securities Act, 2015, alongside Regulation 5.6.1(a) of the PSX Rule Book. The bank's notification is poised to inform the TRE Certificate Holders of the Exchange, ensuring that all procedural formalities are observed as the bank proceeds with the Call Option execution.