Tameer Microfinance Bank Limited (TMFB), a commercial bank in Pakistan that is majority-held by Norwegian mobile firm Telenor, recently issued two term finance certificates (TFCs) each worth PKR 500 million (USD 5 million) on the Karachi Stock Exchange (KSE) in an effort to raise capital. The first TFC will reportedly have a term of 13 months with an annual return of 12 percent. The second TFC will have a term of 24 months with an annual return of 12.5 percent. Nadeem Hussain, TMFB’s president, was quoted as saying, “Microfinance banks don’t generally go to the capital market to raise money. One of the reasons we decided to issue TFCs was to create awareness of our bank among retail investors.” According Nadeem Naqvi, KSE’s managing director, “Developing the bond market is highly important for the KSE management. We want more and more private-sector companies to take advantage of the debt market. [TMFB’s] TFCs offer good interest rates and will be easily tradable. Investors can go to a broker any time and redeem their investments.” In the event of a bank foreclosure, the TFCs will be partially secured by the State Bank of Pakistan’s Microfinance Credit Guarantee Facility, a credit enhancement facility aimed at improving market access for microfinance institutions.
As of 2011, TMFB reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 92.1 million, return on assets (ROA) of 1.76 percent and return on equity (ROE) of 8.56 percent. As of August 2012 data reported to MIX, TMFB had a gross loan portfolio of USD 70.3 million, 152,297 active borrowers, deposits totaling USD 71.4 million and 942,186 depositors.
By Lena Phillips, Research Associate
About Tameer Microfinance Bank Limited (TMFB)
Tameer Microfinance Bank Limited (TMFB) is a licensed commercial bank in Pakistan that provides services such as small business, group and emergency loans; micromortgages; microinsurance; savings; and money transfers. It was founded in 2005 and is based in Shahrah-e-Faisal, Pakistan. Telenor Pakistan, a subsidiary of the Norwegian mobile communications company Telenor, owns 51 percent of TMFB. As of 2011, TMFB reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 92.1 million, return on assets (ROA) of 1.76 percent and return on equity (ROE) of 8.56 percent. As of August 2012 data reported to MIX, TMFB had a gross loan portfolio of USD 70.3 million, 152,297 active borrowers, deposits totaling USD 71.4 million and 942,186 depositors.
Sources and Additional Resources:
Tribune.com Article, “Raising finance: Tameer Microfinance taps capital market”, http://tribune.com.pk/story/493971/raising-finance-tameer-microfinance-taps-capital-market/
MicroCapital.org Article, 15 March 2012: “MICROCAPITAL BRIEF: Telenor Pakistan, Tameer Microfinance, to Focus on Mobile Banking, Rural Microbanking,” https://www.microcapital.org/microcapital-brief-telenor-pakistan-tameer-microfinance-to-focus-on-mobile-banking-rural-microbanking/#more-17752
MicroCapital.org Article, 27 June 2012: “MICROCAPITAL BRIEF: State bank of Pakistan (SBP) Allows Microfinance Providers to Accept Funding from Non-Bank Sources,” https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-allows-microfinance-providers-to-accept-funding-from-non-bank-sources/#more-19252
MicroCapital Universe Profile: Tameer Microfinance Bank Limited (TMFB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tameer+Microfinance+Bank
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