Bank Makramah Limited (PSX: BML) has approved a proposal for its sponsor Nasser Abdulla Hussain Lootah to inject a further Rs. 10 billion into the bank as part of efforts to strengthen its capital base.
The bank disclosed the development to the Pakistan Stock Exchange on August 18 following a meeting of its Board of Directors. The board considered and approved the investment proposal received from the sponsor.
Under the approved arrangement, the sponsor will deposit Rs. 10 billion into Bank Makramah. The amount will initially be recorded in the bank’s books as an advance against share subscription.
The advance will remain recorded as such until the required regulatory and corporate approvals are obtained for the issuance of shares to the sponsor. The shares are expected to be issued through a right issue or another approved mechanism.
The board has authorized the bank’s President and Chief Executive Officer to execute the agreement with the sponsor, which will set out the terms and conditions governing the proposed Rs. 10 billion deposit.
Bank Makramah said the transaction remains subject to the required regulatory and corporate approvals before the advance can be converted into share capital.
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