Engro Fertilizers Limited (EFERT), a wholly owned subsidiary of Engro Corporation Limited, will extend a Rs5 billion intercompany loan to its subsidiary Engro Polymer & Chemicals Limited (EPCL), for a period of one year
The loan will be in the form of a revolving line of credit, shared Engro Fertilizers in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
Engro Fertilizers’ earnings hit Rs26.2bn in 2023, up 64% YoY
As per the minutes of AGM (Annual General Meeting) shared by the company, the shareholders of Engro Fertilizers resolved that: “approval of the members of Engro Fertilizers Limited is hereby accorded by way of special resolution (in accordance with Section 199 of the Companies Act, 2017 read with Companies (investment in associated companies or associated undertakings) Regulations, 2017) for the following acts by the company:
“Approval for the company to extend to its associated company, Engro Polymer & Chemicals Limited, an intercompany loan in the aggregate amount of up to PKR Five billion (PKR 5,000,000,000) comprising of, inter alia, loans, advances and/or security in any form (including without limitation guarantees, government securities, cash, listed/unlisted securities etc.) on an arm’s length basis, in the form of a revolving line of credit valid for a period of one year from the date of the special resolution, which may be renewed by the company for up to four consecutive periods of one year each,” read the minutes of meeting.
Earlier this month, EPCL appointed Abdul Qayoom as Chief Executive Officer (CEO) of the company in place of Jahangir Piracha.
EPCL, incorporated in Pakistan in 1997, is engaged in the manufacturing, marketing, and selling of Poly Vinyl Chloride (PVC), caustic soda, Vinyl Chloride Monomer (VCM), and related products.
The company also has a captive power plant and water recycling plant in its integrated chemical complex. The surplus power produced by the company is also supplied to Engro Fertilizers Limited.
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