Dubai Islamic Bank arranges $101 million financing for Nishat’s acquisition of Rafhan Maize stake 

Dubai Islamic Bank Group has arranged a $101 million Sharia-compliant financing facility to support DG Khan Cement Company Limited’s acquisition of a majority stake in Rafhan Maize Products Company Limited from US-based Ingredion Inc, The News reported. 

The financing was structured as a commodity Murabaha facility and enabled Nishat Group, the parent group of DG Khan Cement, to complete the transaction. 

Dubai Islamic Bank acted as the sole mandated lead adviser, Sharia adviser, arranger and financier for the deal.

As per a statement, the transaction was one of the larger acquisition financings in Pakistan’s corporate sector this year and reflected the growing use of Islamic finance structures in mergers and acquisitions.

The deal involved multiple advisers. Dada Partners acted as buy-side mergers and acquisitions adviser to the purchaser, while Mohsin Tayebaly & Co served as Pakistani legal counsel and Hogan Lovells advised on English law aspects of the transaction.