Engro Polymer signs $35mn Ijarah based long-term financing facility with IFC

KARACHI: Engro Polymer and Chemicals Limited on Thursday announced the signing of financing of dollars 35 million from International Finance Corporation for expansion plans for its production plant of PVC according to bourse filing.

PVC is a chemical used in making numerous plastic products, construction materials like water and sewerage pipes, cables, and consumer items like shoes, packaging films, etc., said a press release here.

This financing was a part of the initial Rs 10.3 billion expansion plan announced earlier, out of which Rs 5.4 billion has already been raised from the issue of right shares.

Engro Polymer has been associated with International Finance Corporation since its inception. IFC is a member of the World Bank Group. EPCL keeps up its position as the industry leader for being the sole producer of PVC resin in Pakistan. It disclosed addition of a new production line of PVC after demand for the chemical continued to surge significantly in the country mainly due to a boom in construction activities.

Commenting on this agreement signed, CFO Engro Polymer and Chemicals Limited Syed Abbas Raza said that the financing of dollars 35 million would not only fund his company's expansion plan but would bring precious foreign exchange to our country.