Engro Fertilizers Limited (EFERT), a subsidiary of Engro Corporation Limited, will provide a Rs5 billion loan to its subsidiary Engro Polymer & Chemicals Limited (EPCL) for one year.
The loan will be a revolving line of credit, as disclosed by Engro Fertilizers to the Pakistan Stock Exchange (PSX) on Wednesday.
According to the Annual General Meeting (AGM) minutes, Engro Fertilizers shareholders approved a special resolution for EFERT to extend an intercompany loan of up to PKR 5 billion to EPCL.
This loan will include loans, advances, and/or security, and will be valid for one year, with the option to renew for up to four consecutive one-year periods.
Abdul Qayoom was appointed as EPCL’s new CEO earlier this month, succeeding Jahangir Piracha.
EPCL, established in Pakistan in 1997, manufactures and sells Poly Vinyl Chloride (PVC), caustic soda, Vinyl Chloride Monomer (VCM), and related products.
Additionally, it operates a captive power plant and water recycling plant in its chemical complex, with surplus power supplied to Engro Fertilizers Limited.
