Press Release
VIS Reaffirms Rating of Basel 3 Compliant Tier-2 (Sukuk 4) Instrument of Meezan Bank Limited
Karachi, June 30, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the rating assigned to Sukuk 4 (Basel 3 Compliant Tier-2 instrument) of Meezan Bank Limited (‘MEBL’ or the ‘Bank’), at ‘AAA’ (Triple A). The long-term instrument rating of ‘AAA’ denotes highest credit quality; the risk factors are negligible, being only slightly more than for risk-free Government of Pakistan’s debt. Outlook on the assigned rating is ‘Stable.’ The previous rating action was announced on June 28, 2024.
In December 2021, the Bank raised Rs. 10.0 billion by issuing privately placed, unsecured, and subordinated Shariah compliant Sukuk based on Mudaraba. The profit is payable semi-annually in arrears. The Sukuks are redeemable with a Bullet payment at the end of the tenth year. However, the Bank can call the Sukuk any time after five years from the issue date, provided it has prior approval from the State Bank of Pakistan (SBP). Additionally, the Sukuks are subject to Lock-in-Clause, and Loss Absorbency Clause as per the ‘SBP’s Instructions for Basel 3 Implementation in Pakistan.’
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Financial Institutions
https://docs.vis.com.pk/Methodologies%202024/Financial-Institution-v2.pdf
Instrument Rating
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf