Karachi: VIS Credit Rating Company Limited has matured its rating of the Basel 3 Compliant Tier-II Sukuk 1 issued by Al-Baraka Bank (Pakistan) Limited, marking the end of its term on August 21, 2024. The debt instrument, initially valued at Rs. 1.5 billion, was launched in 2017 as part of the bank’s strategic financing activities.

According to VIS Credit Rating Company Limited, the Sukuk 1 successfully reached its scheduled redemption this past August, concluding a seven-year investment period. This financial maneuver was part of Al-Baraka Bank’s broader efforts to enhance its capital structure in compliance with Basel III regulations, aimed at bolstering the bank’s long-term financial stability and compliance.

The redemption of this instrument aligns with the financial planning of the bank, reflecting its commitment to meeting regulatory standards and fulfilling its obligations to investors.