KARACHI: Singapore sovereign wealth fund Temasek Holdings has agreed to a further investment of up to 12 billion rupees (S$223 million) in Pakistan's NIB Bank via a rights issue, said NIB.

Temasek, already NIB's largest shareholder with a 63.15- per-cent stake, will participate in the Pakistani bank's 12-billion-rupee rights issue and subscribe for shares not taken up by minority holders.

The rights issue will be offered to all shareholders at a ratio of 42.198 shares at par value, which is 10 rupees per share, for every 100 shares held as of Nov 19.

NIB shares last traded at 8.45 rupees each, giving it a market value of close to US$300 million (S$450 million).

"The purpose of the rights issue is to bolster NIB's capital to meet the opportunities and challenges that the board expects will be presented over the next few years," NIB said in a statement dated Monday.

If Temasek takes up the entire rights issue, its stake in NIB will rise to about 75 per cent, said JS Global Capital analyst Farhan Rizvi.

According to NIB, with the rights issue, its paid-up capital will increase to over 40 billion rupees, the highest of all Pakistani banks.