HBL gets SBP's approval to exercise Call Option for Term Finance Certificate issued in 2016

November 20, 2020 (MLN): Habib Bank Limited (HBL), in a notification to Exchange, wishes to exercise the call option in full with respect to all outstanding Habib Bank Limited-Term Finance Certificate (HBLTFC) issued in the year 2016 corresponding to the 5th anniversary of the issue date as on February 19, 2021 ("the Call Option Exercise Date").

According to the notice issued to PSX, HBL has received the approval of the State Bank of Pakistan for the same in terms of their letter dated November 18, 2020.

To recall, in accordance with the Trust Deed dated December 15, 2015, Habib Bank Limited is the “Issuer" of Term Finance Certificate ("HBL TFC") of PKR 10 billion wherein Pak Brunei Investment Company Limited is the "Trustee".

On February 19, 2021, the entire principal outstanding amount of PKR 9.982 billion (Pak Rupees Nine Billion Nine Hundred Eighty-Two Million) of HBLTFC issue along with accrued profit (subject to deduction of Zakat and Tax at source as per applicable laws) shall be redeemed in full on call option exercise date.

For determining the entitlement under the Call Option, the transfer books pertaining to the TFC Issue will remain closed from February 13, 2021, to February 19, 2021 (both days inclusive), the notification said.

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