IFC moves to redeem part of its stake in Pakistan’s Packages Limited

Packages Limited (PKGS), Pakistan’s largest paper and board producer, has informed its stakeholders that it has received a redemption notice from the International Finance Corporation (IFC), a member of the World Bank Group, for a portion of its outstanding preference shares.

The listed company disclosed development in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“Packages Limited has received a redemption notice dated 23 January 2026 from International Finance Corporation, Washington D.C., USA. (IFC) to redeem 2 million preference shares/convertible stock out of the outstanding 8,186,842 preference shares/convertible stock issued to IFC under the subscription agreement with IFC dated 25 March 2009,” read the notice.

A redemption notice is a notification informing investors that an issuer is exercising its right to redeem preferred shares before their maturity date.

The listed company clarified that the request will be considered and deliberated by the Board of Directors at its meeting scheduled for January 27, 2026.

Back in 2019, the IFC announced a $50 million equity investment in Packages Limited to support a socially responsible company that directly employs nearly 3,500 people and indirectly employs about 27,000.

According to a statement issued at the time, the investment was intended to help Packages Limited enhance its capital base, improve cost competitiveness, and strengthen its ability to withstand the effects of the global economic crisis.

Packages Limited is a publicly listed company incorporated in Pakistan. The company was established as a joint venture between the Ali Group of Pakistan and Akerlund & Rausing of Sweden in 1957. Initially, PKGS was engaged in converting paper and paperboard into packaging for the consumer industry.