KARACHI: Samba Bank Limited is raising Rs5.0 billion through Term Finance Certificates (TFCs) to meet its Tier-2 capital requirements.
“State Bank of Pakistan (SBP) had granted its final approval to the bank for issuance of rated, privately placed, unsecured and subordinated Term Finance Certificates (TFCs) of Rs5.0 billion,” a bourse filing said.
“We are pleased to further inform you that the bank has received Rs5.0 billion in its designated account for receipt of proceeds against the issue”.
The funds will be utilized in business operations and will contribute towards the bank’s Tier 2 capital for complying with the Capital Adequacy Ratio requirements.
Samba Bank Limited is a majority owned subsidiary of Samba Financial Group of Saudi Arabia.
Samba Financial Group (SFG), parent entity of Samba Bank, has entered into a legally binding merger agreement with National Commercial Bank (NCB) of Saudi Arabia on 11 October 2020.
Pursuant to the terms of merger agreement, the merger will be implemented through the merger of SFG into NCB, which will result in all of the assets and liabilities of SFG being transferred to NCB.
On completion of merger NCB will continue to exist, whereas SFG will cease to exist as a legal entity and its shares will be cancelled and new shares in NCB will be issued to shareholders of SFG.
Consequently, upon completion of the merger, the shares of Samba Bank Limited held by SFG will be transferred to the merged entity.