KARACHI: InfraZamin has announced a partnership with Sundridge Foods Limited in launching an Rs 2 billion Agri-Infrastructure Sukuk.
This Shariah-compliant financing instrument will be issued by Sunridge Foods Limited, a subsidiary of Unity Foods Limited.
The issuance of this Agri-Infrastructure Sukuk will strengthen Pakistan’s agricultural landscape and drives long-term benefits for the environment and food security. The issuance of the Sukuk is subject to SECP approval and Sunridge Foods completion of all transaction related conditions.
The proceeds raised through the Sukuk will fund Sunridge Foods’ Balancing, Modernisation, and Replacement (BMR) initiatives, which aim to modernise production facilities with sustainable, high-efficiency technologies.
Notably, the BMR also includes installation of 1-MW wind turbines, and a 0.5-MW solar plant to support Sunridge’s renewable energy initiative and construction of new silos and warehouses to significantly increase agri-produce storage capacity. The funds will also support working capital for key wheat and rice processing facilities in Karachi and Lahore, enabling increased production of staple foods items.
Maheen Rahman, CEO of InfraZamin Pakistan informed that this transaction reflects InfraZamin’s commitment to supporting the development of Pakistan’s agriculture sector. By providing a 100 percent principal credit guarantee, we are facilitating access to capital markets and fostering sustainability through green energy initiatives and food security, he added.
Farrukh Amin, CEO of Unity Foods, commented on the partnership said that this investment paves the way for us to enhance our facilities with cutting-edge, renewable energy solutions, enabling us to meet the rising demand for our products. It’s a bold stride toward operational efficiency and reflects our unwavering commitment to achieving Net Zero by 2050.
It may be mentioned here that InfraZamin Pakistan, with a long-term credit rating of AAA, provides an additional layer of security for investors participating in the Sukuk. The Sukuk will be fully principle protected with InfraZamin’s Guarantee.
Copyright Business Recorder, 2024
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