Matco Foods, Bank Alfalah ink financing agreement to expand corn starch production

KARACHI: Matco Foods Limited, a leading South Asian agribusiness, has entered into a PKR 750 million, three-year financing agreement with Bank Alfalah, one of Pakistan’s leading commercial banks. This strategic partnership aims to enhance Matco Foods’ corn starch production capabilities to meet the growing demands of a diverse customer base.

The investment will be directed towards expanding Matco Foods’ existing corn starch facility located in the Allama Iqbal Industrial City, Special Economic Zone (SEZ), Faisalabad. This facility, operational since August 2022, has been pivotal in supplying high-quality corn starch to both domestic and international markets.

The funds will expand production capacity from 200 tons per day (tpd) to 300 tpd grind. Additionally, a portion of the financing will be used to repay short-term loans. As part of the agreement, Bank Alfalah will have the option to convert its financing into ordinary shares in Matco’s new subsidiary, subject to regulatory approvals.

Khalid Ghori, CEO of Matco Foods, expressed his enthusiasm about the collaboration:’At Matco Foods, we are committed to investing in the growth of our corn starch segment to serve our diversified customer base better. We would like to extend our sincere gratitude to Bank Alfalah for its strategic support, which plays a crucial role in the continued growth of Matco Foods.

We are optimistic about Pakistan’s economic trajectory and are dedicated to contributing to its progress.

Our facility’s location within the Special Economic Zone has been instrumental in our success, and we extend our thanks to FIEDMC, the Board of Investment, SIFC, and other government stakeholders for their unwavering support and visionary leadership.’

Farooq Ahmed Khan, Group Head Corporate, Investment Banking and International Businessat Bank Alfalah Limited shared his perspective on the collaboration:

‘We are excited to partner with Matco Foods in their growth journey, providing customised financial solutions that align with their expansion plans. This collaboration reinforces Bank Alfalah’s commitment to driving strategic investments in Pakistan’s agribusiness sector, strengthening the agricultural value chain, and fostering sustainable economic progress.

As a bank that supports value-added agriculture, we remain dedicated to enabling businesses like Matco Foods to scale, innovate, and contribute to long-term industry growth.“

With this partnership, Bank Alfalah strengthens its commitment to advancing value-added agricultural processing.

The collaboration aligns with Matco Foods’ expansion goals, reinforcing support for Pakistan’s agribusiness sector. This strategic alliance marks a significant investment in the industry and reflects both organisations’ confidence in the country’s economic potential.

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