Sunridge Foods Launches Agri-Infrastructure Sukuk at PSX

Sunridge Foods, a food processing firm, introduced Pakistan’s premier fully subscribed agri-infrastructure sukuk, securing Rs2 billion in debt financing at the Pakistan Stock Exchange (PSX) on Monday.

BankIslami Pakistan orchestrated the sukuk issuance, supported by a 100% credit guarantee from InfraZamin Pakistan.

In a released statement, the organization detailed that the capital would facilitate the company’s balancing, modernization, and replacement (BMR) initiatives, emphasizing upgrades to production facilities through sustainable and energy-efficient technologies.

“Essential elements of the BMR encompass the setup of 1 MW wind turbines and a 0.5 MW solar power plant to reinforce Sunridge’s renewable energy endeavors, alongside the establishment of new silos and warehouses to significantly augment agricultural produce storage capacity.

“Moreover, the funds will deliver working capital assistance for Sunridge’s crucial wheat and rice processing units in Karachi and Lahore, thereby enabling escalated output of vital staple food products,” the statement conveyed.

The sukuk issuance was spearheaded by BankIslami Pakistan Limited as the designated lead manager, entirely backed by institutional investors. It was reinforced by a complete principal credit guarantee from InfraZamin Pakistan and held a AAA long-term rating by VIS Credit Rating Company.

“This signifies an innovative stride toward sustainable financing via capital markets within the nation’s agricultural sphere.”

The sukuk also incorporated AKD Securities as financial advisor, Al-Hilal Shariah Advisors as specialists in Shariah-compliance, and Pak Brunei Investment Company Limited as investment agent and trustee, ensuring robust governance and protection of sukuk holder interests under a Shariah-compliant structure.

Deputy British High Commissioner Lance Domm commended the sukuk as a landmark in broadening climate-conscious, Shariah-aligned finance within Pakistan’s agri-infrastructure domain, anticipating it would render economic advancement sustainable.

“The UK, through its backing of InfraZamin and other financial bodies, sustains its dedication to fortifying Pakistan’s financial framework,” he remarked.

InfraZamin Pakistan CEO Maheen Rahman stated that the credit guarantee bolstered investor confidence and unlocks capital for sustainable agriculture.

Sunridge Foods chairman Amir Shahzad observed that the Sukuk would revolutionize production, stimulate renewable energy, and amplify storage of indispensable food staples.

BankIslami Pakistan president and CEO Rizwan Ata underscored the relevance of Shariah-compliant finance in propelling sustainable economic expansion.

PSX chairperson Shamshad Akhtar acclaimed the undertaking as an audacious, private-sector-driven resolution to climate concerns and food vulnerability. PSX CEO Farrukh Subzwari reaffirmed the exchange’s function in championing meaningful, joint solutions that mobilize capital for national priorities and enduring sustainability.