KARACHI: In a major development for Islamic finance and agricultural infrastructure, InfraZamin Pakistan, Sunridge Foods (Pvt) Limited and BankIslami Pakistan marked the launch of the country’s first agri-infrastructure Sukuk with a ceremonial gong-striking at the Pakistan Stock Exchange (PSX).
The fully subscribed Rs 2 billion Sukuk marks a pioneering milestone in Shariah-compliant, climate-resilient financing for Pakistan’s agriculture sector.
Structured under a robust governance framework, the Sukuk is backed by a 100 percent principal credit guarantee from InfraZamin Pakistan and has received a long-term AAA rating from VIS Credit Rating Company.
InfraZamin, Sunridge Foods ink deal for Rs2bn Sukuk
Institutional investors led the subscription, highlighting growing confidence in innovative Islamic finance instruments for infrastructure and development.
BankIslami Pakistan acted as the Mandated Lead Arranger, while AKD Securities served as Financial Advisor. Al-Hilal Shariah Advisors ensured Shariah compliance, and Pak Brunei Investment Company Limited was appointed as Investment Agent and Trustee.
The funds raised through the Sukuk will finance Sunridge Foods’ Balancing, Modernization, and Replacement (BMR) projects. These include the installation of 1 MW wind turbines and a 0.5 MW solar power plant to reduce carbon emissions, as well as the construction of silos and warehouses to expand food storage capacity.
A significant portion will also provide working capital support to Sunridge’s wheat and rice processing units in Karachi and Lahore—facilitating enhanced production of essential staple foods.
Analysts noted that The Sukuk launch represents a critical step in aligning Pakistan’s capital markets with sustainable infrastructure development, climate goals, and food security priorities, reinforcing the role of Islamic finance in shaping an inclusive economic future.
Chief Guest, Deputy British High Commissioner Lance Domm hailed the Sukuk as a significant step toward climate-resilient and sustainable economic growth. “This transaction demonstrates how partnerships can mobilize private investment for development,” he noted, reaffirming the UK’s commitment to support Pakistan’s financial ecosystem through its collaboration with InfraZamin and others.
InfraZamin CEO Maheen Rahman described the issuance as a transformative example of how credit guarantees can unlock access to capital markets for critical sectors like agriculture. “We are committed to enabling long-term, sustainable financing solutions that support Pakistan’s food security and economic resilience,” she said.
Amir Shahzad, Chairman and Executive Director of Sunridge Foods, said the initiative would allow the company to modernize its operations and enhance renewable energy use. “This Sukuk not only boosts our capacity but also strengthens Pakistan’s food systems through sustainable and inclusive growth,” he stated.
BankIslami CEO Rizwan Ata emphasized the growing relevance of Islamic finance in addressing development challenges. “This Agri-Infrastructure Sukuk showcases the potential of Shariah-compliant instruments to channel capital toward national priorities,” he said.
PSX Chairperson Dr. Shamshad Akhtar underscored that Pakistan’s dual crises of climate change and food insecurity required bold, homegrown financial solutions. She termed the Sukuk a prime example of private sector innovation meeting public need.
PSX CEO Farrukh Subzwari added that PSX is committed to fostering a sustainable finance ecosystem, calling on banks, fund managers, regulators, and corporates to collaborate on future initiatives that combine financial innovation with national development.
Copyright Business Recorder, 2025