BankIslami plans Rs5bn Sukuk to boost capital

April 16, 2026 (MLN): BankIslami Pakistan Limited (PSX: BIPL) is planning to raise up to  Rs5 billion through the issuance of a Shariah-compliant Sukuk, aimed at strengthening its regulatory capital base and supporting the expansion of its banking operations.

According to a notice submitted to the Pakistan Stock Exchange, the bank’s Board of Directors has approved the issuance of a privately placed, over-the-counter listed Sukuk, which will qualify as a Tier 2 capital instrument under Basel III guidelines set by the State Bank of Pakistan.

The proposed Sukuk issuance remains subject to the completion of corporate and regulatory formalities, including necessary approvals from relevant authorities.

In addition, the bank plans to seek shareholders’ approval for the issuance of ordinary shares other than by way of rights, which may be issued upon conversion of the Sukuk in the event of a trigger as defined in the terms of the instrument, and subject to directives from the State Bank of Pakistan.

This move signals BankIslami’s intent to reinforce its capital adequacy while maintaining compliance with evolving regulatory requirements and positioning itself for future growth.

Copyright Mettis Link News