The Aga Khan Fund for Economic Development (AKFED), the bank’s sponsor, has expressed interest in purchasing further shares of the company against an investment of Rs. 3.53 billion, Habib Bank Limited (PSX: HBL) announced on Tuesday.
The stock filing states that AKFED informed HBL by letter dated May 1, 2023 of its plan to purchase more shares of the commercial bank on the open market using the accumulated dividends that total Rs. 3,534,747,825 that have not been repatriated.
“The said purchase of HBL shares shall be in accordance with applicable regulatory approvals,” the document continued.
The action was taken because, according to Topline Securities, the State Bank of Pakistan (SBP) does not permit the repatriation of profits due to low levels of foreign exchange reserves. However, in order to prevent a net outflow of US dollars, the regulator permits funds to be used inside of Pakistan.
A for-profit organisation called AKFED works to improve economic capability and opportunities in particular developing-world areas. Its financial service providers include commercial banks, microfinance banks, insurance businesses, and property development and management firms in nine countries; some of these firms are registered on local stock exchanges and some date back nearly 70 years.
Over 90 distinct project companies that employ more than 55,000 people make up the AKFED network of affiliates. Its total group sales in 2021 were close to $4 billion USD.