Matco Foods signs financing agreement with Bank Alfalah

KARACHI: Matco Foods Limited has entered into a Rs750 million three-year financing agreement with Bank Alfalah to enhance its corn starch production capabilities, a statement said on Saturday.

The investment will be directed towards expanding Matco Foods’ existing corn starch facility located in the Allama Iqbal Industrial City, Special Economic Zone (SEZ), Faisalabad. This facility, operational since August 2022, has been pivotal in supplying high-quality corn starch to both domestic and international markets. The funds will expand production capacity from 200 tons per day (tpd) to 300 tpd grind. A a portion of the financing will be used to repay short-term loans. As part of the agreement, Bank Alfalah will have the option to convert its financing into ordinary shares in Matco’s new subsidiary, subject to regulatory approvals.

Khalid Ghori, CEO of Matco Foods, expressed his enthusiasm about the collaboration: “At Matco Foods, we are committed to investing in the growth of our corn starch segment to serve our diversified customer base better. Our facility’s location within the Special Economic Zone has been instrumental in our success, and we extend our thanks to FIEDMC, the Board of Investment, SIFC, and other government stakeholders for their unwavering support and visionary leadership.’

Group Head Corporate, Investment Banking and International Business at Bank Alfalah Limited Farooq Ahmed Khan shared his perspective on the collaboration: “We are excited to partner with Matco Foods in their growth journey, providing customised financial solutions that align with their expansion plans. This collaboration reinforces Bank Alfalah’s commitment to driving strategic investments in Pakistan’s agribusiness sector, strengthening the agricultural value chain, and fostering sustainable economic progress.”