Karachi: Pakistan Stock Exchange Limited has announced the listing of JS Bank Limited's Rated, Privately Placed, Unsecured & Subordinated Tier-2 Term Finance Certificates, valued at PKR 4,000 million. The listing, part of the Privately Placed Debt Securities Listing Regulations, will take effect on Monday, November 16, 2026. Trading for these financial instruments is scheduled to begin on Tuesday, November 17, 2026, utilizing the exchange's provided trading platform and settled via the National Clearing Settlement System (NCSS) on a T+1 basis.
The issuance of these Term Finance Certificates is intended to bolster JS Bank Limited's Tier 2 Capital, thereby enhancing its Capital Adequacy Ratio (CAR). The issued amount, dated July 6, 2026, will mature on July 6, 2036. As per the specifications, the face value per scrip has been set at PKR 100,000, with a tenor of up to ten years. Profit will be paid quarterly in arrears, calculated on an actual day basis using a markup rate comprising a Base Rate plus a 2.00% margin per annum.
According to information available from the Pakistan Stock Exchange (PSX), the Base Rate is determined by the average three-month Karachi Interbank Offer Rate (KIBOR), as published by the Financial Markets Association. The instrument's repayment structure is designed to redeem 0.24% of the issue amount over the first nine years, with the remaining 99.76% distributed in four equal quarterly installments in the final year.
The TFCs are unsecured and rank subordinate to all other bank debts, except those eligible for Tier 1 capital. A Lock-in Clause specifies that payments of profit or principal will be withheld if they result in any shortfall in the Bank's Minimum Capital Requirement, CAR, or Leverage Ratio. The Point of Non-Viability (PONV) provisions allow for potential conversion into common shares or a write-off, as determined by the State Bank of Pakistan.
The issuance has attracted a wide range of investors, with Allied Bank Limited contributing PKR 600 million, representing 15% of the total, and Sindh Insurance Limited investing PKR 500 million, or 12.50%. Other notable investors include The Bank of Punjab and Habib Bank Limited, each with PKR 350 million, making up 8.75% per entity.
JS Bank Limited's issuance agent is Pak Brunei Investment Company Limited, with legal counsel provided by Haidermota & Co. The market maker is yet to be appointed. The instruments are eligible for the Central Depository Company (CDC), and their transfer is governed by the Central Depositories Act, 1997, along with applicable CDC regulations.