KARACHI: BankIslami Pakistan Limited has approved the issuance of a Shariah-compliant Sukuk of up to Rs5 billion as a Tier 2 capital instrument under Basel III guidelines, according to a disclosure submitted to the Pakistan Stock Exchange under Sections 96 and 131 of the Securities Act, 2015. The Sukuk will be privately placed and listed over the counter, with the aim of strengthening the bank’s regulatory capital position and supporting the growth of its banking operations, subject to all required corporate and regulatory approvals.
The bank stated that its Board of Directors has formally approved the plan to issue the Sukuk, highlighting that the move is intended to enhance capital adequacy and ensure compliance with Basel III standards issued by the State Bank of Pakistan. This step is part of the bank’s broader strategy to reinforce its financial stability while expanding its operations in Pakistan’s Islamic banking sector.
Furthermore, BankIslami Pakistan Limited will seek shareholder approval for the issuance of ordinary shares other than through rights in case the Sukuk is converted upon the occurrence of a specified conversion event, in accordance with its terms and subject to directions from the State Bank of Pakistan. The initiative is expected to support the bank’s long-term growth while maintaining regulatory compliance and financial resilience.