InfraZamin Pakistan and Sunridge Foods ink deal for agri-infrastructure Sukuk

KARACHI: InfraZamin has partnered with Sundridge Foods Limited to launch Rs2 billion agri-infrastructure Sukuk, a statement said on Monday.

This Sharia-compliant financing instrument will be issued by Sunridge Foods Limited, a subsidiary of Unity Foods Limited.InfraZamin Pakistan, with a long-term credit rating of AAA, provides an additional layer of security for investors participating in the Sukuk, which will be fully principal-protected with InfraZamin’s guarantee.

The proceeds raised through the Sukuk will fund Sunridge Foods’ balancing, modernization, and replacement (BMR) initiatives, which aim to modernise production facilities with sustainable, high-efficiency technologies. Notably, the BMR also includes installation of 1MW wind turbines, and a 0.5MW solar plant to support Sunridge’s renewable energy initiative and construction of new silos and warehouses to significantly increase agri-produce storage capacity. The funds will also support working capital for key wheat and rice processing facilities in Karachi and Lahore, enabling increased production of staple foods items.

Maheen Rahman, CEO of InfraZamin Pakistan, expressed, “This transaction reflects InfraZamin’s commitment to supporting the development of Pakistan’s agriculture sector. By providing a 100 per cent principal credit guarantee, we are facilitating access to capital markets and fostering sustainability through green energy initiatives and food security.”

The issuance of this agri-infrastructure Sukuk, will strengthen Pakistan’s agricultural landscape and drive long-term benefits for the environment and food security. The issuance of the Sukuk is subject to the Securities and Exchange Commission of Pakistan’s (SECP) approval and Sunridge Foods’ completion of all transaction-related conditions.

Farrukh Amin, CEO of Unity Foods, commented on the partnership: “Our collaboration with InfraZamin and the launch of Sunridge’s first agriculture infrastructure Sukuk is a transformative step for Unity Foods. This investment paves the way for us to enhance our facilities with cutting-edge, renewable energy solutions, enabling us to meet the rising demand for our products. It’s a bold stride towards operational efficiency and reflects our unwavering commitment to achieving Net Zero by 2050.”