⏸️ KFGB1: HOLD Signal (7/10) – Certificate regarding maintenance of security cover

📌 Key Takeaways

• ✅ Security cover for ‘Gender Bond’ (PPTFC) maintained at 172% as of June 30, 2025.
• 📈 Security cover amounts to Rs. 3,200 million.
• 📉 Outstanding PPTFC is Rs. 1,862.25 million.
• 🏦 Security as per ‘Guarantee Agreement’ dated September 19, 2024, and ‘Search Report’ K-5557-06.
• 📜 Verification performed by A. F. Ferguson & Co., Chartered Accountants.
• 👍 Compliance with Pakistan Stock Exchange Limited Regulations 5C.8 (xii) (g).
• 🔒 Certificate is for submission to Pakistan Stock Exchange only.
• 🚫 Distribution to third parties requires prior written consent.
• 🗓️ Certificate date: October 02, 2025.
• 👩‍💼 Management responsible for maintaining security cover and providing accurate information.
• 🔍 Auditor’s responsibility to provide certificate based on the scope.
• 🤝 The security exceeds the regulatory minimum of 125%.
• ✔️ Annexure ‘A’ details the security cover and redemption reserve account.
• 📑 Kashf Foundation confirms the maintenance of adequate records and internal controls.

🎯 Investment Thesis

Based on the available information, a HOLD recommendation is appropriate. The high security cover of 172% provides comfort and suggests a low risk of default. However, without more detailed financial information and analysis, it is difficult to justify a BUY recommendation. The ‘Gender Bond’ appears to be a stable and relatively low-risk investment within the microfinance sector in Pakistan, but further due diligence is needed before making a stronger recommendation. Price target remains unchanged.