Askari Bank joined the group of banks that have successfully raised tier II capital from the public by issuing TFCs of Rs 1.50 billion. The issue carries a floating rate of return at KIBOR plus 1.5 percent for eight years. The transaction received an overwhelming response and the IPO was oversubscribed by 60 percent. An impressive ceremony was held at a local hotel in Karachi to mark the close of this transaction.

SECP chairman, Dr Tariq Hassan was chief guest at the occasion. Investors to the issue including the heads of several banks & financial institutions attended this function besides Chairman Executive Committee Askari Commercial Bank Limited, Lieutenant General Masood Parwaiz (Retd).

The said issue was jointly advised and arranged by United Bank Ltd, Pak Oman Investment Company Ltd and Crosby Asset Management Ltd. The pre-IPO portion was closed in a record time of 30 days. As the Bank is looking to book assets at a fast pace, the proceeds will contribute toward Askari's capital requirements.

Copyright Business Recorder, 2005