BankIslami Approves Rs5 Billion Tier-2 Sukuk to Support Banking Growth
Karachi, April 16, 2026: BankIslami Pakistan Limited has approved a plan to raise Rs5 billion through a proposed Sukuk issuance as part of efforts to strengthen its regulatory capital position and support the continued growth of its banking operations.
According to a disclosure submitted to the Pakistan Stock Exchange, the bank’s Board of Directors has approved the issuance of the Sukuk, subject to obtaining all necessary corporate and regulatory approvals and completing the required formalities. The proposed instrument is intended to qualify as a Tier-2 capital instrument under the Basel III guidelines issued by the State Bank of Pakistan.
The move is aimed at providing BankIslami with additional regulatory capital to support its expanding banking operations while maintaining a stronger capital base.
Shareholders’ Approval Required
The bank also disclosed that it will seek shareholders’ approval for the proposed Sukuk issuance. The issuance is expected to be carried out by way of otherwise than rights of ordinary shares of the bank, subject to the occurrence of a conversion event in accordance with the terms of the proposed Sukuk and the orders of the State Bank of Pakistan.
The company has emphasized that the transaction remains subject to the completion of applicable regulatory and corporate requirements.
Strengthening Capital for Future Growth
The proposed Rs5 billion Sukuk represents a strategic step by BankIslami to reinforce its capital position while supporting the bank’s future business growth. Tier-2 capital forms part of the regulatory capital framework designed to provide banks with an additional financial buffer.
The disclosure was made under Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1(a) of the PSX Regulations. The company has formally notified the Pakistan Stock Exchange and relevant regulatory authorities about the proposed transaction.
The announcement on April 16, 2026, provides investors with an early indication of BankIslami’s plans to raise additional capital through Shariah-compliant financing. The final issuance will depend on the required approvals and completion of the prescribed process.
