Bank Makramah Limited (BML) has announced that its Board of Directors has approved a proposal for an additional Rs10 billion equity investment by the bank’s sponsor, Nasser Abdulla Hussain Lootah, as part of ongoing efforts to strengthen the bank’s capital base and support its transformation and long-term growth. The proposed investment will be made as an advance against equity and remains subject to the required regulatory and corporate approvals.
According to the bank, the additional sponsor investment is being arranged exclusively by Nasser Abdulla Hussain Lootah, reflecting his continued support for BML and confidence in its turnaround strategy and future potential. The proposed capital injection is expected to provide the bank with a stronger financial foundation as its management continues efforts to strengthen operations, develop the business and pursue sustainable growth.
Upon completion of the proposed investment, the sponsor’s aggregate investment in Bank Makramah will reach Rs51 billion. The latest commitment represents another significant step in the sponsor’s continued financial backing of the bank and follows a series of capital injections and corporate transactions undertaken since his involvement in BML.
The sponsor’s association with the bank began with an initial Rs10 billion capital injection, which supported the acquisition of a majority stake in April 2023. The initial investment marked the beginning of a broader transformation programme aimed at strengthening the bank’s financial position and creating a foundation for future development.
Following the initial capital injection, a further Rs5 billion was invested by the sponsor. This amount is currently held as an advance against equity, adding to the capital support provided to the bank as it continues its restructuring and growth efforts.
A major development in the bank’s capital strengthening journey subsequently came through the landmark merger with Global Haly Development Limited. The transaction contributed Rs26.467 billion to Bank Makramah’s capital base and also resulted in the integration of the high-value Creekside Property into the bank.
The proposed additional Rs10 billion investment would further increase the sponsor’s overall financial commitment to BML. According to the bank, the latest capital commitment is intended to reinforce its recapitalisation efforts and provide additional financial strength as management works to improve the business and build a sustainable growth platform.
The additional investment comes at a time when Bank Makramah is continuing its transformation into a growing Islamic banking institution. The bank said the sponsor’s increasing financial support demonstrates confidence in the management team, its turnaround strategy and the institution’s longer-term development prospects.
The proposed investment will remain subject to the necessary regulatory and corporate approvals before completion. Once completed, the additional equity commitment will take the sponsor’s cumulative investment in BML to Rs51 billion, underlining the scale of financial support provided to the bank since the acquisition of the majority stake in 2023.
Bank Makramah said the continued backing provides management with greater capacity to focus on strengthening the business and accelerating its transformation. The stronger capital position is also expected to support the bank as it pursues its longer-term plans and develops its position within the Islamic banking sector.
The latest commitment adds another significant component to BML’s recapitalisation journey, which has included direct sponsor investments, advances against equity and the contribution resulting from the Global Haly Development Limited merger. Together, these measures have increased the financial resources available to the bank and supported its efforts to establish a stronger foundation for future operations.
The bank described the sponsor’s continued and increasing investment as a strong vote of confidence in BML’s management, turnaround plans and future development. The proposed Rs10 billion injection therefore represents not only additional capital support but also a further commitment towards the bank’s ongoing transformation and its ambitions for sustainable, long-term growth as an Islamic banking institution.
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