February 08, 2023 (MLN): The Bank of Punjab (PSX: BoP) on Wednesday announced its intention to redeem its entire outstanding Term Finance Certificates (TFC) issue, worth Rs2.5 billion on March 9th, 2023.
The redemption will be in accordance with Clause 3.12 of the Trust Deed dated December 06, 2016, executed between the Bank of Punjab and Pak Brunei Investment Company Limited, as well as Condition 27 of the TFC terms and conditions, the company said in a notification sent to PSX.
On the redemption date, the bank will repay the entire principal outstanding amount of Rs2,494 million along with accrued profit, subject to the deduction of applicable taxes and Zakat. The notice serves as a reminder to TFC holders to prepare for the full redemption of their investment on the specified date.
The bank’s decision to exercise its call option in full demonstrates its commitment to meeting its financial obligations and providing a secure investment opportunity for its TFC holders.
