This year, U Microfinance Bank Ltd. (U Bank) was awarded the ABF Corporate & Investment Banking Award 2020 for the “Microfinance Syndication Deal of the Year – Pakistan” category. The Syndicate Term loan was executed between U Microfinance Bank Ltd. and Allied Bank Limited in the last week of December 2018, with the drawdown in trenches, with the purpose of fueling business expansion and growth in the loan portfolios.
This landmark transaction is the first and largest of its kind in the microfinance space of Pakistan in terms of the amount secured from multiple partner banks in the form of a syndicate. No other player in the microfinance industry of Pakistan has achieved the distinction of having a syndicated facility worth US$ 259Mn in a single transaction in the last 20 years. The facility participants comprise six leading commercial banks including the National Bank of Pakistan, The Bank of Punjab, Allied Bank Limited, Bank Alfalah Limited, MCB Bank Limited, and Askari Bank Limited.
The Syndicate transaction was timely and successfully finalized on considerably low-cost funding as compared to Pakistan’s industry and market norm. This collaboration was a testament to the banking channel relationship that U Bank has developed in the past years and demonstrates its brand value as an industry leader.
The Syndicated Term loan has contributed significantly towards the growth of the organization and its loan portfolio. Over the years, U Bank has evolved into a strong microfinance service provider and is striving towards leading the industry in the coming years.
U Bank has grown from 75 branches in 2017, to 201 branches by December 2019, of which 60 branches were added in 2019 alone. By securing competitive pricing on this transaction, the Bank managed to pass on the maximum benefit to its customer, by offering lower interest rates on loans. In the past three years only, U Bank also secured a significant customer base, and our active borrowers increased from 187,000 to more than 314,000.
U Microfinance Bank Limited is in constant pursuit to enable the unbanked population of the country. On the occasion, Mr. Kabeer Naqvi – President & CEO of U Microfinance Bank said ‘Our ambition is to bring banking services to the masses and enable them to earn a sustainable livelihood and improve their living standards. Being awarded the Microfinance Syndication Deal of the Year – Pakistan, is recognition of our constant endeavor towards financial inclusion for all ’
Due to the diligent efforts and remarkable banking practices, U Bank has once again taken the front row to lead Pakistan’s microfinance banking industry and has set new benchmarks.