Bank Makramah Limited has announced plans to issue 27.88 million shares to Term Finance Certificate holders as part of its capital restructuring, aiming to strengthen its Tier 1 capital base.
The development follows earlier disclosures and is part of the bank’s broader strategy to improve its financial position through conversion of debt into equity.
The issuance remains subject to regulatory and shareholder approvals.
According to the disclosure on page 1, the conversion is based on an outstanding amount of Rs. 3.35 billion, which will be adjusted for the issuance of shares to TFC holders.
The newly issued shares will form part of the bank’s Tier 1 capital, supporting its capital adequacy and financial stability.
The move reflects a common restructuring approach in the banking sector, where liabilities are converted into equity to strengthen balance sheets and reduce financial pressure.
The bank stated that further steps will proceed in line with regulatory requirements, with final implementation dependent on necessary approvals from relevant authorities and shareholders.
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