March 29, 2022 (MLN): The shareholders of Bank Al Habib Limited (PSX: BAHL) in its 31st Annual General Meeting on Tuesday have resolved to increase the authorized share capital of the bank from Rs15 billion to Rs20bn by creating 500 million ordinary shares of Rs10 each, bank's filing on PSX showed today.
It was further resolved that the Term Finance Certificates (TFCs) of the bank in the amount of Rs5bn issued pursuant to the terms of the TFC Issuance Agreement dated September 24, 2021, for the purpose of Tier 2 Capital under Basel III Capital Instructions of the State Bank of Pakistan (“SBP”), may be converted into ordinary shares of the bank.
This is subjected to a maximum of 80mn additional ordinary shares being issued upon such conversion, if so, directed by SBA on the occurrence of a point of non-viability as determined by SBP, at a price equivalent to the market value of the shares of the Bank on the date of the trigger of the point of non-viability as declared by SBP.
During the meeting, the shareholders also resolved that the perpetual TFCs of BAHL up to Rs7bn, including a green shoe option of Rs3bn for the purpose of Additional Tier 1 Capital under Basel III Capital Instructions of the SBP, may be converted into ordinary shares of the Bank subject to a maximum of 118.574mn additional shares.
In addition, all such ordinary shares shall be issued other than by way of rights in accordance with Section 83(1)(b) of the Companies Act, 2017 and shall further be subject to the approval of the Securities and Exchange Commission of Pakistan (SECP).
The shareholders have further resolved the payment of cash dividend at the rate of 70%, i.e., Rs7 per share of Rs. 10/- each for the year ended December 31, 2021, as recommended by the directors.
