Bank Makramah Limited (PSX: BML) shareholders have approved a comprehensive restructuring of the bank’s shareholding, including the issuance of 27,888,469 fully paid-up ordinary shares to settle outstanding principal and accrued profit on its rated, unsecured, and subordinated term finance certificates. The new shares will form part of the bank’s Tier I Capital, subject to necessary regulatory approvals from the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan.
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In addition, shareholders approved a Reorganisation Scheme filed before the High Court of Islamabad for the restructuring of the bank’s shareholding. The scheme is designed to strengthen the bank’s capital base and facilitate an equitable restructuring of ownership, supporting its long-term growth and financial stability.
Share Issuance Details
| Aspect | Detail |
|---|---|
| Shares Issued | 27,888,469 fully paid-up ordinary shares |
| Purpose | Settlement of TFC principal and accrued profit |
| Capital Treatment | Part of Tier I Capital (pending regulatory approvals) |
| Regulatory Approvals Required | State Bank of Pakistan, SECP |
Shareholding Restructuring Scheme
Under the Reorganisation Scheme filed with the Islamabad High Court:
- A portion of the sponsor’s existing shares will be cancelled
- An equivalent number of new shares will be issued to remaining shareholders on a pro-rata basis at no cost
- Eligibility for new shares will be limited to shareholders recorded in the Bank’s Register of Members on the Book Closure Date (to be determined after court sanction)
Strategic Rationale
The restructuring initiative aims to achieve several key objectives:
- Capital Strengthening: Enhancing Tier I Capital through share issuance
- Debt Settlement: Resolving outstanding TFC obligations
- Equitable Restructuring: Fair distribution of shares among remaining shareholders
- Financial Stability: Supporting long-term growth and stability
- Regulatory Alignment: Working within SBP and SECP frameworks
Next Steps
The Reorganisation Scheme remains subject to approval by the High Court of Islamabad. Following court sanction, the Book Closure Date will be determined, establishing eligibility for new shares under the scheme. Regulatory approvals from the State Bank of Pakistan and SECP are also required for the Tier I Capital treatment of the newly issued shares.
About Bank Makramah Limited
Bank Makramah Limited (PSX: BML) is a Pakistani commercial bank offering a range of banking products and services to retail and corporate customers. The bank is focused on strengthening its capital base and expanding its presence in Pakistan’s banking sector.
