Matco Foods raises Rs2.5 billion through six-month Sukuk

Matco Foods Limited has issued Rs2.5 billion worth of rated, secured and privately placed short-term Sukuk certificates, the company informed the Pakistan Stock Exchange on Friday.

According to the disclosure made under Section 96 of the Securities Act, 2015 and PSX regulations, the Sukuk carries a tenor of six months and is priced at six-month KIBOR plus 1.00%.

The issuance has been assigned an ‘A-1’ rating by VIS Credit Rating Company Limited.

The company stated that the proceeds from the Sukuk will be used to meet its working capital requirements.

Matco Foods said the transaction supports its liquidity position and forms part of its strategy to diversify funding sources through Shariah-compliant instruments.