June 28, 2022 (MLN): The shareholders of Bank of Punjab (BoP) on Wednesday resolved the issuance of the proposed Additional Tier-I capital by the bank in the amount up to Rs10 billion, inclusive of a green shoe option of Rs5bn, the Term Finance Certificates (TFC) Issue.
This is in the form of rated, privately placed/listed, unsecured, subordinated, perpetual, and non-cumulative TFCs.
The shareholders further resolved that the TFCs may be converted into ordinary shares of the bank if so directed by SBP on the occurrence of a point of non-viability as determined by SBP or upon the occurrence of a pre-specified trigger point pursuant to Basel III Capital Instructions, or due to an inability to exercise the lock-in clause or non-cumulative features of the TFCs, on such terms and conditions as may be determined by SBP.
The conversion would take place at a price equivalent to the market value of the shares of the Bank on the date of the trigger of the point of non-viability as declared by SBP.
It was further resolved that the issuance of such shares upon the occurrence of any of the conversion events shall be subject to a cap of over one billion additional ordinary shares being issued.
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