Askari Bank Limited has decided to redeem its PKR 6 billion Term Finance Certificates (TFCs) ahead of schedule, invoking a contractual “call option” later this year. The announcement was made in a notice to the Pakistan Stock Exchange (PSX) on Friday.
Under the plan, the bank will repay the full principal amount along with accrued profit on September 17, 2025. The payout will be subject to standard deductions, including Zakat and withholding tax.
Who Gets Paid and When
The redemption applies to the bank’s rated, subordinated, and unsecured TFCs issued in December 2019 under an agreement with Pak Oman Investment Company Limited. According to the bank’s notice, only holders registered by the close of business on September 1, 2025, will qualify for payment.
To facilitate the process, the transfer books for the TFCs will be closed from September 2 to September 16. The CDC Share Registrar Services Limited will handle the eligibility records.
Why It Matters
Early redemption of debt instruments can signal a stronger balance sheet or a strategic refinancing move. By exercising its call option, Askari Bank is essentially buying back its own debt—possibly to reduce financing costs or improve capital structure flexibility ahead of changing market conditions.
The decision also underscores the bank’s adherence to the clauses outlined in the TFC’s trust deed, which gives issuers the right to redeem before maturity under certain terms.
