BankIslami Moves Ahead With Rs5 Billion Proposed Sukuk Issuance
Karachi, April 16, 2026: BankIslami Pakistan Limited has announced plans to strengthen its regulatory capital position through a proposed Rs5 billion Sukuk issuance, subject to obtaining the required corporate and regulatory approvals.
According to a disclosure submitted to the Pakistan Stock Exchange, the bank’s Board of Directors has approved the proposed issuance of Sukuk as a Tier-2 capital instrument under the Basel III guidelines issued by the State Bank of Pakistan.
The proposed Sukuk is intended to support the continued growth of BankIslami’s banking operations while enhancing its regulatory capital position. The instrument will be issued for an amount of up to Rs5 billion.
The bank stated that the proposed issuance remains subject to obtaining all applicable corporate and regulatory approvals, as well as completing the necessary formalities. This means the announcement represents an approved proposal rather than a completed issuance.
Shareholders’ Approval Also Required
As part of the process, BankIslami will seek approval from its shareholders for the issuance of the Sukuk through a mechanism other than the rights issuance of ordinary shares.
The bank’s disclosure further states that the Sukuk would be convertible into ordinary shares upon the occurrence of a conversion event, in accordance with the terms of the proposed Sukuk issuance and applicable requirements of the State Bank of Pakistan.
Focus on Capital and Business Growth
The proposed transaction reflects BankIslami’s stated objective of maintaining a stronger regulatory capital base while supporting the expansion of its banking operations. As a Tier-2 capital instrument under Basel III, the proposed Sukuk is designed to form part of the bank’s regulatory capital framework, subject to the relevant approvals and conditions.
The disclosure was made under Sections 96 and 131 of the Securities Act, 2015 and Clause 5.6.1(a) of the Pakistan Stock Exchange Regulations. The announcement was signed by Hasan Shahid, Company Secretary, and dated April 16, 2026.
For investors and shareholders, the next important steps will include the required approvals and the subsequent implementation of the proposed Sukuk issuance. Until those steps are completed, the Rs5 billion transaction remains a proposed capital-raising initiative.
In summary, BankIslami’s proposed Rs5 billion Tier-2 Sukuk is aimed at strengthening its regulatory capital position and supporting the growth of its banking operations, with the transaction still subject to shareholder, regulatory and other required approvals.
