Askari Bank to Redeem TFCs Worth PKR 6 Billion

Askari Bank Limited has revealed its intention to fully redeem its PKR 6 billion (USD 21.14 million) subordinated, unsecured Term Finance Certificates (TFCs) by utilizing a call option.

The publicly traded bank communicated this update in a notification to the Pakistan Stock Exchange (PSX) on Friday.

The notice stated, “Holders of the rated, subordinated, and unsecured TFCs, totaling PKR 6,000,000,000/- issued by Askari Bank Limited, are hereby informed that the Issuer plans to exercise the call option in its entirety concerning the TFC Issue, in accordance with Clause 3.12 of the trust deed dated December 24, 2019, between the issuer and Pak Oman Investment Company Limited.”

The redemption is planned for September 17, 2025, and will encompass the complete outstanding principal amount along with any accrued profit up to that date, after accounting for relevant taxes and Zakat deductions.

For eligibility purposes, the bank will suspend the transfer of TFC ownership from September 2 to September 16, 2025, inclusively.

Askari Bank Limited was established in Pakistan on October 9, 1991, as a Public Limited Company. It operates as a scheduled commercial bank, primarily engaged in banking activities as defined by the Banking Companies Ordinance, 1962.

The Fauji Foundation is the ultimate parent organization of Askari Bank.