UBL to invest up to Rs22bn in Khushhali Microfinance Bank

United Bank Limited (UBL) shareholders have approved a further equity investment of up to Rs22 billion in Khushhali Microfinance Bank Limited (KMBL), an associated company of the bank, potentially increasing the bank’s stake in the microfinance lender.

UBL, one of Pakistan’s largest commercial banks, disclosed the development in its filing to the Pakistan Stock Exchange (PSX) on Tuesday.

“UBL to make further equity investment in Khushhali Microfinance Bank Limited of up to Rs22 billion, which may increase its aggregate shareholding in KMBL accordingly,” read the notice.

The proposed equity investment will be made by way of subscription of the bank’s proportionate entitlement pursuant to KMBL’s further issue of ordinary shares through a rights issue to its existing shareholders, at the ratio of approx. 51.166 new ordinary shares of KMBL having a face value of Rs10 per share for every one existing ordinary share held, at a subscription price of Rs2 per share, representing a discount of Rs8 per share on the terms to be notified by KMBL in the formal rights offer documentation.

The investment will also be made by acquiring additional shares through one or more transactions or arrangements.

KMBL is Pakistan’s first microfinance institution, established in August 2000. Its primary mission is to promote financial inclusion and empowerment for low-income individuals, households, and entrepreneurs across Pakistan, aiming to accelerate the country’s socio-economic growth.

Last month, the UBL board approved a further equity investment in KMBL of up to Rs22 billion through participation in the rights issue and the acquisition of additional shares, including pursuant to its underwriting commitments.

“KMBL had negative equity of Rs16.15 billion as of December 31, 2025. UBL’s investment would help strengthen the financials of KMBL and help in the stability of the financial markets of Pakistan,” UBL said back then.