On Tuesday, Habib Bank Limited (PSX: HBL) informed the Pakistan Stock Exchange that its sponsor, the Aga Khan Fund for Economic Development (AKFED), has shown its interest to buy additional shares in the bank against an investment of Rs. 3.53 billion.

According to the stock filing, AKFED has informed HBL vide its letter dated May 1, 2023, of its intention to acquire additional shares of the commercial bank from the open market by utilizing the accumulated dividends that have not been repatriated, amounting to Rs. 3,534,747,825.

“The said purchase of HBL shares shall be in accordance with applicable regulatory approvals,” the filing added. The move comes as the State Bank of Pakistan (SBP) does not allow the repatriation of dividends due to low levels of Foreign Exchange reserves, according to Topline Securities. However, the regulator allows funds to be used within Pakistan to avoid a net outflow of US Dollars.

AKFED is a for-profit international development agency that seeks to create economic capacity and opportunity in specific regions of the developing world. Its financial service institutions, some of which date back nearly 70 years, include commercial banks, microfinance banks, insurance companies, and property development and management companies in nine countries, some of which are listed on local stock exchanges.

AKFED operates as a network of affiliates, with more than 90 separate project companies employing over 55,000 people. In 2021, it had group revenues of approximately US$ 4 billion.

Source: Pro Pakistani