KARACHI, Jan 27: Union Bank has decided to issue Term Finance Certificates (TFCs) worth Rs1 billion. The TFC issue has been approved by the State Bank.

The TFCs of Rs250 million will be offered to general public through initial public offering (IPO), while the pre-IPO amounting to Rs750 million has already been disbursed to investors and financial institutions.

With a tenor of seven

years the TFC offers a profit rate of 6-month KIBOR plus 2 per cent with no floor and no cap.

“This is Union Bank’s third TFC issue. The TFC is rated A+ by Pacra which denotes high credit quality emanating from a strong capacity for timely payment of financial commitment,” said Asif Sana, Senior Executive Vice President of the bank.