KARACHI: Sunridge Foods, a food processing company, has launched Pakistan’s first fully subscribed agri-infrastructure sukuk, raising Rs2 billion in debt financing at the Pakistan Stock Exchange (PSX) on Monday.
The sukuk issuance was arranged by BankIslami Pakistan with a 100% credit guarantee provided by InfraZamin Pakistan.
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In a press statement, the company elaborated that the funds would be utilised to advance the company’s balancing, modernisation, and replacement (BMR) projects, focused on upgrading production facilities with sustainable and energy-efficient technologies.
“Key components of the BMR include the installation of 1 MW wind turbines and a 0.5 MW solar power plant to bolster Sunridge’s renewable energy efforts, alongside the construction of new silos and warehouses to substantially expand agricultural produce storage capacity.
“Additionally, the proceeds will provide working capital support for Sunridge’s critical wheat and rice processing plants in Karachi and Lahore, facilitating increased production of essential staple food items,” the statement read.
The sukuk issuance was led by BankIslami Pakistan Limited as the mandated lead arranger, fully subscribed by institutional investors. It was backed by a 100% principal credit guarantee from InfraZamin Pakistan and carried a long-term AAA rating assigned by VIS Credit Rating Company.
“This represents a pioneering step towards sustainable financing via capital markets in the country’s agricultural sector.”
The sukuk also involved AKD Securities as financial advisor, Al-Hilal Shariah Advisors as Shariah-compliance experts, and Pak Brunei Investment Company Limited as investment agent and trustee ensures robust governance and protection of the interests of sukuk holders under a Shariah-compliant framework.
Deputy British High Commissioner Lance Domm hailed the sukuk as a milestone in expanding climate-friendly, Shariah-compliant finance in Pakistan’s agri-infrastructure sector, believing it would make economic growth sustainable.
“The UK, through its support to InfraZamin and other financial institutions, remains committed to strengthening Pakistan’s financial ecosystem,” he said.
InfraZamin Pakistan CEO Maheen Rahman said the credit guarantee strengthened investor trust and unlocks capital for sustainable agriculture.
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Sunridge Foods chairman Amir Shahzad noted the Sukuk would modernise production, boost renewable energy, and expand storage of essential food staples.
BankIslami Pakistan president and CEO Rizwan Ata emphasised the importance of Shariah-compliant finance in driving sustainable economic growth.
PSX chairperson Shamshad Akhtar praised the initiative as a bold, private-sector-led response to climate and food insecurity. PSX CEO Farrukh Subzwari reaffirmed the exchange’s role in supporting purposeful, collaborative solutions that mobilise capital for national priorities and long-term sustainability.
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