Bank Makramah achieves major milestone as net assets to increase by Rs29.39bn

KARACHI: Bank Makramah Limited (BML) has achieved a major milestone in its journey toward strengthening its capital base with the Board of Directors approving a comprehensive scheme of arrangement.

This transformative restructuring, which demonstrates the sponsors’ unequivocal commitment to the Bank’s future, involves the amalgamation of Global Haly Development Limited (GHDL) into BML, resulting in a substantial increase in the Bank’s net assets by approximately Rs 29.39 billion. This move will significantly enhance the Bank’s financial standing and position it for sustained future growth.

The restructuring scheme also includes the issuance of fully paid ordinary shares to GHDL shareholders, as well as the redemption of Term Finance Certificates (TFCs) along with accrued profit. Furthermore, the Bank will streamline its capital structure by reducing its share capital through the cancellation of shares that are not represented by available assets, ensuring enhanced financial stability.

Chairman of the Board of Directors, Abdullah Nasser Abdulla Hussain Lootah, emphasized the sponsors’ unprecedented commitment to the Bank, stating, “This restructuring reflects our unwavering dedication to the Bank’s transformation and long-term success. It positions us to enhance shareholder value and meet the evolving needs of our customers.”

The scheme, approved during a board meeting on Thursday, is subject to regulatory, corporate, and shareholder approvals, as well as the sanction of the Islamabad High Court.

Copyright Business Recorder, 2024