Bank Al Habib Limited Granted Approval to Issue 145 Million Shares

Karachi, The Securities & Exchange Commission of Pakistan (SECP) has approved Bank Al Habib Limited’s application to issue up to 145,000,000 ordinary shares. This approval, dated March 21, 2024, follows the bank’s application and subsequent correspondence regarding the issuance of shares by way of other than right offer under relevant regulatory frameworks.

The SECP’s decision is based on a special resolution passed by the shareholders of Bank Al Habib during the Annual General Meeting held on March 21, 2023, and further documentation submitted by the bank thereafter. The shares will be issued against the conversion of Term Finance Certificates (TFCs) worth Rs. 7,000 million, upon occurrence of a point of non-viability as directed by the State Bank of Pakistan.

The issuance is conditional on several terms including the governance of all features relevant to the aforementioned TFCs by the conditions disclosed to the shareholders and the SECP. Additionally, the shares will be issued in book-entry form only, and a lock-in clause will be applied as specified by the regulations.

Bank Al Habib must also adhere to strict compliance requirements including maintaining sufficient authorized capital, not contravening its memorandum and articles of association, and promptly communicating any changes in covenants or regulatory approvals to the SECP. Furthermore, the bank is required to report to the SECP the details of the share issuance within seven days, including the number of shares issued, the list of TFC holders receiving shares, and the updated total paid-up capital.

The SECP has made clear that its approval is contingent solely on the information provided by Bank Al Habib and does not imply responsibility for any agreements between the bank and the TFC holders.