At-Tahur Limited plans Rs750mn Islamic Sukuk issuance to fund working capital

At-Tahur Limited has disclosed its plans to raise Rs 750 million through a privately placed Islamic Sukuk, as per a statement issued to the Pakistan Stock Exchange (PSX) on Monday. 

The Sukuk, rated and secured, has a tenure of six months and includes a Green Shoe Option of Rs. 150 million. The financing aims to address the company’s working capital requirements.

The Sukuk is priced at 6-month KIBOR plus 150 basis points, with profit payments and principal repayment structured as a single bullet payment at the end of the tenor. 

The instrument is backed by a ranking charge over current and biological assets amounting to Rs. 750 million.

At-Tahur’s entity credit ratings stand at A- for the long term and A-2 for the short term, while the instrument itself has been rated A-1.

This Sukuk issuance highlights the company’s strategy to utilize Shariah-compliant financing to meet its capital needs efficiently.

At-Tahur Limited is a public limited company incorporated on March 16, 2007, under the Companies Ordinance, 1984 (Now Companies Act, 2017).

The principal activity of the company is to run a dairy farm for the production and processing of milk and dairy products.