Bank Makramah Limited (BML) has taken a pivotal step in strengthening its financial foundation with the approval of a comprehensive restructuring scheme by its Board of Directors. This strategic move is designed to enhance the Bank’s capital base, ensuring long-term growth and sustainability. One of the key components of the restructuring is the amalgamation of Global Haly Development Limited (GHDL) into BML, a move that will bolster the Bank’s net assets by approximately Rs 29.39 billion.
The integration of GHDL into Bank Makramah Limited is expected to provide a substantial financial boost, significantly improving its overall financial standing. This change will not only increase the Bank’s capital but also position it to navigate future opportunities more effectively. The restructuring also includes the issuance of fully paid ordinary shares to GHDL shareholders, ensuring a fair alignment between both parties following the merger.
A crucial aspect of the restructuring plan is the redemption of the Bank’s outstanding Term Finance Certificates (TFCs), including accrued profits. This will allow BML to optimize its capital structure and enhance financial stability. Additionally, the Bank will undertake the cancellation of shares that are not backed by available assets, thereby reducing its share capital. These measures are set to improve the operational efficiency of the Bank while laying a solid foundation for future growth.
Abdullah Nasser Abdulla Hussain Lootah, Chairman of the Board of Directors, expressed his confidence in the restructuring initiative. “This restructuring reflects our steadfast dedication to the Bank’s growth and success. It positions us to enhance shareholder value while addressing the evolving needs of our customers,” Lootah said. The restructuring scheme was approved during a recent Board meeting and is contingent on receiving regulatory, corporate, and shareholder approvals, as well as sanctioning by the Islamabad High Court.
Once finalized, this restructuring plan is expected to solidify BML’s position in the financial sector. The merger with GHDL and the associated capital restructuring will equip the Bank to better serve its customers, enhance operational efficiency, and drive long-term growth. This move aligns with BML’s broader strategic goals to improve its financial stability and ensure its competitiveness in the evolving financial market.