logo
Sunridge raises Rs2bn via Pakistan's first agri-infrastructure sukuk

Sunridge raises Rs2bn via Pakistan's first agri-infrastructure sukuk

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.
Pakistan's real effective exchange rate hits 21-month low in June 2025
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.
Budgetary requirements: Ijara Sukuk funding to help govt save Rs32bn per year
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.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

PSX ends modestly higher but couldn't hold 140k level
PSX ends modestly higher but couldn't hold 140k level

Express Tribune

time19 minutes ago

  • Express Tribune

PSX ends modestly higher but couldn't hold 140k level

Listen to article The Pakistan Stock Exchange (PSX) closed modestly higher on Monday as the benchmark KSE-100 index rose 172.77 points, or 0.12%, to close at 139,380.06. Despite briefly crossing the 140,000 mark during early trade, profit-taking in banking-sector blue chips pulled the index below the threshold by the close of the session. Arif Habib Limited Deputy Head of Trading Ali Najib remarked that the PSX again attempted to pass the 140,000 mark but in vain as the KSE-100 index ended the day at 139,380 points. He pointed out that the session resumed on a buoyant note and the index touched intra-day high at 140,149 (up 942 points, or 0.68%) in early hours. However, the buying spree proved short-lived as the market succumbed to selling headwinds and ultimately lost the 140,000 level to profit-taking. Over the weekend, Foreign Minister Ishaq Dar stated that Pakistan and the US were 'very close' to finalising a trade deal, possibly within days. However, the US side, following Dar's meeting with Secretary of State Marco Rubio, did not confirm any timeline. If the deal is finalised, it could boost exports, attract investment and improve market sentiment. It may also likely strengthen the rupee and investor confidence, though delays could dampen immediate economic impact and optimism, Najib said. The stars of the day were Lucky Cement, Systems Limited, Fatima Fertiliser, Pakistan State Oil and Sazgar Engineering Works, which added 379 points. On the other hand, the index lost 384 points due to some selling in banking sector blue-chip stocks, namely UBL, Meezan Bank, Bank Alfalah, HBL and MCB Bank. 'This selling can be attributed to street expectations of a 50-basis-point cut in the upcoming monetary policy meeting, scheduled for July 30, the analyst said. 'The outlook is still intact as 137,000 will continue to act as strong support for the KSE-100. If breached, the index may be pushed towards 135k, where attractive valuations and anticipated monetary easing can trigger renewed buying interest,' Najib commented. Overall trading volumes decreased to 589.3 million shares compared with Friday's tally of 634.8 million. Traded value increased to Rs34.6 billion as compared to Rs24.6 billion in the previous session. Overall, shares of 483 companies were traded. Of these, 251 stocks closed higher, 205 dropped and 27 remained unchanged. Aisha Steel Mills was the volume leading with trading in 51.8 million shares, gaining 42 paisa to close at Rs12.76.

Trump, Starmer to meet in Scotland, with trade and Gaza on agenda
Trump, Starmer to meet in Scotland, with trade and Gaza on agenda

Business Recorder

time6 hours ago

  • Business Recorder

Trump, Starmer to meet in Scotland, with trade and Gaza on agenda

EDINBURGH: US President Donald Trump will host British Prime Minister Keir Starmer at his golf resort in western Scotland on Monday for talks expected to range from their recent bilateral trade deal to the worsening hunger crisis in Gaza, the two governments said. Trump, riding high after announcing a huge trade agreement with the European Union late on Sunday, said he expected Starmer would also be pleased. 'The prime minister of the UK, while he's not involved in this, will be very happy because you know, there's a certain unity that's been brought there, too,' Trump said. 'He's going to be very happy to see what we did.' Starmer had hoped to negotiate a drop in U.S. steel and aluminum tariffs as part of the discussions, but Trump on Sunday ruled out any changes in the 50% duties for the EU and has said the trade deal with Britain has been 'concluded.' The two men are expected to travel from Trump's luxury golf resort in Turnberry, on Scotland's west coast, to a second sprawling estate owned by Trump in the east, near Aberdeen. Starmer was heading to Scotland from Switzerland, where England on Sunday won the Women's European Championship final. Casting a shadow over their visit has been the deepening crisis in the war-torn Gaza enclave, where images of starving Palestinians have alarmed the world. Starmer has recalled his ministers from their summer recess for a cabinet meeting, a government source said on Sunday, most likely to discuss the situation in Gaza as pressure grows at home and abroad to recognize a Palestinian state. The British leader on Friday said his country would recognize a Palestinian state only as part of a negotiated peace deal, disappointing many in his Labour Party who want him to follow France in taking swifter action. Trump on Friday dismissed French President Emmanuel Macron's plan to recognize a Palestinian state, an intention that also drew strong condemnation from Israel, after similar moves from Spain, Norway and Ireland last year. Trump said he understood Starmer wanted to discuss Israel, adding that while the U.S. would increase its aid to Gaza, it wanted others to join the effort. Ukraine will also be on the agenda. Dozens of Gazans have died of malnutrition in recent weeks, according to the Gaza Health Ministry in the Hamas-run enclave, with aid groups warning of mass hunger among Gaza's 2.2 million people. The war began on October 7, 2023, when Hamas-led fighters stormed southern Israel, killing 1,200 people, mostly civilians, and taking 251 hostages back to Gaza, according to Israeli tallies. Since then, Israel's offensive has killed nearly 60,000 people in Gaza, mostly civilians, according to Gaza health officials. It has reduced much of the enclave to ruins and displaced nearly the entire population.

Trump, Starmer meet in Scotland on US–EU trade deal
Trump, Starmer meet in Scotland on US–EU trade deal

Express Tribune

time7 hours ago

  • Express Tribune

Trump, Starmer meet in Scotland on US–EU trade deal

Listen to article US President Donald Trump will host British Prime Minister Keir Starmer at his golf resort in western Scotland on Monday for talks expected to range from their recent bilateral trade deal to the worsening hunger crisis in Gaza, the two governments said. Trump, riding high after announcing a huge trade agreement with the European Union late on Sunday, said he expected Starmer would also be pleased. "The prime minister of the UK, while he's not involved in this, will be very happy because you know, there's a certain unity that's been brought there, too," Trump said. "He's going to be very happy to see what we did." Starmer had hoped to negotiate a drop in US steel and aluminum tariffs as part of the discussions, but Trump on Sunday ruled out any changes in the 50% duties for the EU and has said the trade deal with Britain has been "concluded." The two men are expected to travel from Trump's luxury golf resort in Turnberry, on Scotland's west coast, to a second sprawling estate owned by Trump in the east, near Aberdeen. Starmer was heading to Scotland from Switzerland, where England on Sunday won the Women's European Championship final. Casting a shadow over their visit has been the deepening crisis in the war-torn Gaza enclave, where images of starving Palestinians have alarmed the world. Read: US-EU strike trade deal in transatlantic standoff Starmer has recalled his ministers from their summer recess for a cabinet meeting, a government source said on Sunday, most likely to discuss the situation in Gaza as pressure grows at home and abroad to recognize a Palestinian state. The British leader on Friday said his country would recognize a Palestinian state only as part of a negotiated peace deal, disappointing many in his Labour Party who want him to follow France in taking swifter action. Trump on Friday dismissed French President Emmanuel Macron's plan to recognize a Palestinian state, an intention that also drew strong condemnation from Israel, after similar moves from Spain, Norway and Ireland last year. Trump said he understood Starmer wanted to discuss Israel, adding that while the US would increase its aid to Gaza, it wanted others to join the effort. Ukraine will also be on the agenda. Dozens of Gazans have died of malnutrition in recent weeks, according to the Gaza Health Ministry in the Hamas-run enclave, with aid groups warning of mass hunger among Gaza's 2.2 million people.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store