KARACHI: BankIslami Pakistan plans to raise Rs3.5 billion ($34.8 million) via subordinated sukuk, a bank official said.

With Basel III global banking standards being phased in around the globe, several Islamic banks have issued such capital-boosting instruments, including those in Turkey, Malaysia, Saudi Arabia and the United Arab Emirates.

Last week, Bank Islami’s board of directors approved a plan to raise Tier 2 capital in tranches of Rs500m to help fund its expansion, the Karachi-based lender said in a bourse filing.

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