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Business Recorder
22-07-2025
- Business
- Business Recorder
Pakistan's first ‘agri Sukuk' launched
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
Business Recorder
21-07-2025
- Business
- Business Recorder
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.
Business Recorder
01-05-2025
- Business
- Business Recorder
Grand finale of 2nd Life Pakistan 2.0 held
KARACHI: Some six standout teams were awarded cash prizes totaling Rs 2.625 million to further develop and scale their climate innovation projects at the grand finale of 2nd Life Pakistan 2.0 - a national climate innovation programme. These included winners from both the growth and idea stages of the competition. Hosted by SEED Ventures in collaboration with Unilever Pakistan and the United Nations Development Programme (UNDP) in Pakistan serving as the Secretariat for the National Plastic Action Partnership (NPAP), the event marked the conclusion of a six-month journey into circular economy entrepreneurship, spotlighting startups that view waste not as a problem but as a possibility. The programme has redefined how entrepreneurship can contribute to climate resilience, demonstrating that circularity is not just a concept; it is a practical path to a cleaner, stronger, and more inclusive Pakistan. The showcase brought together climate-focused startups, policymakers, and sustainability leaders to highlight innovative solutions for rethinking waste. With support through mentorship and business development, over 30 young ventures from across Pakistan turned environmental challenges into scalable, impact-driven businesses, tackling everything from e-waste and textiles to food scraps and agri by-products. Lance Domm, British Deputy High Commissioner, shared his optimism during the event and said that it is inspiring to see how young Pakistanis are creating practical, scalable solutions to environmental challenges. '2nd Life Pakistan 2.0 reflects the innovation and commitment our youth bring to building a greener, more sustainable future,' he added. Tariq Ali Nizamani, MD of Sindh Solid Waste Management Board, also lent his voice to the celebration. Speaking on the importance of youth-led climate action, he said that Pakistan's climate journey cannot move forward without innovation and action from its youth. Initiatives like 2nd Life Pakistan empower young minds to turn environmental challenges into solutions that uplift communities and support inclusive green growth, he added. On the occasion, Shaista Ayesha CEO SEED Ventures and GM Unilever Pakistan, Van Nguyen Deputy Resident Representative UNDP Pakistan were also present. Copyright Business Recorder, 2025
