KFGB1

⚡ Flash Summary

Kashf Foundation’s ‘Gender Bond’ (PPTFC) has security cover maintained at 172% as of June 30, 2025, exceeding the regulatory requirement of 125%. A. F. Ferguson & Co., Chartered Accountants, have verified this maintenance in compliance with Pakistan Stock Exchange Limited Regulations. The security cover, amounting to Rs. 3,200 million, is against outstanding PPTFC of Rs. 1,862.25 million. This certificate is for submission to the Pakistan Stock Exchange and not for distribution to other parties without prior consent.

📌 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.

⚡ Flash Summary

Kashf Foundation, an organization set up under Section 42 of the Companies Act 2017, has been requested to provide a certificate regarding the maintenance of a Redemption Reserve Account for its ‘Gender Bond’ (PPTFC) as of June 30, 2025. The auditors, A.F. Ferguson & Co., have issued a certificate stating that the company has maintained the required balance in the Redemption Reserve Account in compliance with Pakistan Stock Exchange regulations. The balance in the account, held with MCB Bank Limited, is PKR 362,578,666, which is more than the payment obligations of PKR 109,195,792 due in September and December 2025. The purpose of this account is to ensure sufficient funds are available for the redemption of the privately placed term finance certificates.

📌 Key Takeaways

• ✅ Kashf Foundation maintains a Redemption Reserve Account for its ‘Gender Bond’ (PPTFC) as of June 30, 2025.
• 🏦 The Redemption Reserve Account is held with MCB Bank Limited under account number 0044-740011005048.
• 📜 The audit was conducted by A. F. Ferguson & Co., Chartered Accountants, a member firm of the PwC network.
• 🗓️ The audit certificate is dated October 02, 2025.
• 🇵🇰 The audit complies with Pakistan Stock Exchange Limited Regulations 5C.8 (xii) (h).
• ⚖️ The company’s management is responsible for maintaining adequate accounting records and internal controls.
• 🔒 The Redemption Reserve Account balance as of June 30, 2025, is PKR 362,578,666.
• 💰 Payment obligations due in September and December 2025 total PKR 109,195,792.
• ✔️ The Redemption Reserve Account balance exceeds the upcoming payment obligations.
• 🤝 A Letter of Lien and Set Off agreement with Pak Brunei Investment Company Limited is in place.
• 🧾 The auditors compared the account details with the ‘Letter of Lien and Set off’ and ‘Amendment Agreement’.
• ⚠️ The certificate is restricted to the facts stated and is solely for submission to the Pakistan Stock Exchange Limited.
• 🏢 Kashf Foundation confirms maintaining an amount equal to payment obligations becoming due.
• 👩‍💼 The certificate does not relieve management of its responsibilities.
• 📑 The certificate is based on the management’s representation that all information provided is genuine.

🎯 Investment Thesis

HOLD. The announcement confirms that Kashf Foundation is adequately managing its Redemption Reserve Account for the Gender Bond (PPTFC). The current balance exceeds upcoming payment obligations, mitigating the risk of default. Given the compliance with regulatory requirements and responsible financial management demonstrated by this announcement, a HOLD recommendation is appropriate. While the information is positive, it primarily confirms existing obligations are being met, rather than signaling significant growth or undervaluation.