Press Release
VIS Finalizes Rating of Commercial Paper of Pakistan Microfinance Investment Company
Karachi, September 29, 2025: VIS Credit Rating Company Limited (‘VIS’) has finalized short-term rating of ‘A1+’ (A One Plus) of the Commercial Paper (CP) of Pakistan Microfinance Investment Company (‘PMIC’ or the ‘Company’). Short-term rating of A1+ indicate the strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Previous rating action was announced on 4th September, 2025.
The instrument issued on 12th September 2025 is short-term, unsecured, privately placed CP with a total issue size of PKR 2,500m. The purpose of the CP is to mobilize funding for onward lending to microfinance banks and institutions. The proceeds will primarily support financial inclusion initiatives, particularly enhancing the socio-economic status of women borrowers. The CP is issued denominations of PKR 1 million with a tenor of up to six months, priced at a discount equivalent to 6M KIBOR + 80 bps, and redeemed at face value on maturity. Instruments, issued as promissory notes, is placed with eligible investors via private placement, with rollovers subject to market conditions. The redemption date of this CP is 11th March 2026.
The CP rating reflects PMIC’s strategic position as Pakistan’s largest wholesale lender to microfinance institutions, serving as a key enabler of the country’s financial inclusion agenda. Rating also incorporates strong sponsor backing from Pakistan Poverty Alleviation Fund (PPAF), Karandaaz, and KfW Development Bank (KfW), providing financial strength, sector expertise, and operational support. PMIC preserves strong asset quality through rigorous underwriting and continuous monitoring of partner institutions, sustaining credit quality amid microfinance sector challenges. The Company’s sound liquidity profile, reinforced by sponsor support, robust capitalization, and prudent funding strategies provides additional comfort for timely redemption of the instrument. A streamlined governance framework, experienced management, and ongoing strategic initiatives in product innovation, green financing, and women-focused financial inclusion enhance sustainability and long-term creditworthiness, while its planned short-term commercial paper program reflects prudent funding diversification to support operational growth.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Non-Banking Finance Company
https://docs.vis.com.pk/Methodologies%202024/NBFCs202003.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf