Bank of Punjab Cleared to Issue New Shares Against TFC Conversion

Business & Finance

Lahore, The Securities & Exchange Commission of Pakistan has granted approval to the Bank of Punjab for the issuance of up to 971,229,558 ordinary shares. This decision, as detailed in a notification from the Commission, permits the bank to convert Term Finance Certificates (TFCs) valued at Rs. 8,017,500,000 into ordinary shares. This approval follows an application by the bank dated December 23, 2022, with follow-up correspondence on April 19, 2024. According to information available from the Pakistan Stock Exchange (PSX), this issue will be executed by way of an offer other than a rights offer, under the stipulations of Section 83(1)(b) of the Companies Act, 2017, combined with Regulation 5 of the Companies (Further Issue of Shares) Regulations, 2020.

The decision comes on the heels of a special resolution passed during an Extraordinary General Meeting held on June 29, 2022, and is contingent on several conditions. These include the issuance of shares in book-entry form, adherence to specified lock-in clauses, and compliance with the terms disclosed to shareholders and the Commission. The Bank is also required to maintain a sufficient capital cushion and must inform the Commission of any changes in the terms or circumstances of the TFC conversion.

Furthermore, the Bank is tasked with providing the Commission, within seven days post-share issuance, with detailed information regarding the number of shares issued, the identities of the TFC holders receiving shares, the conversion price, and the updated total paid-up capital. This approval is based solely on the documentation and information provided to the Commission, with no responsibility for agreements between the TFC holders and the Bank.