KARACHI: In a significant move for both Islamic finance and Pakistan’s agricultural sector, InfraZamin Pakistan, Sunridge Foods (Pvt) Limited, and BankIslami Pakistan launched the country’s first agri-infrastructure Sukuk at a ceremony held at the Pakistan Stock Exchange (PSX).
According to media reports, the Rs 2 billion Sukuk, fully subscribed, is a milestone in Shariah-compliant and climate-resilient financing for agriculture. Backed by a 100% principal credit guarantee from InfraZamin Pakistan, the Sukuk received a long-term AAA rating from VIS Credit Rating Company.
The funds raised through the Sukuk will be directed toward Sunridge Foods’ Balancing, Modernisation, and Replacement (BMR) projects, including the installation of 1 MW wind turbines and a 0.5 MW solar power plant to reduce carbon emissions.Â
Additionally, funds will be used to build silos and warehouses, expanding food storage capacity, and to support working capital for Sunridge’s wheat and rice processing units in Karachi and Lahore.
The Sukuk attracted institutional investors, reflecting growing confidence in Islamic finance instruments for infrastructure and development. BankIslami Pakistan acted as the Mandated Lead Arranger, AKD Securities as Financial Advisor, and Al-Hilal Shariah Advisors ensured Shariah compliance. Pak Brunei Investment Company Limited was appointed as Investment Agent and Trustee.
The issuance of this Sukuk marks a crucial step in aligning Pakistan’s capital markets with sustainable development, climate goals, and food security.Â
Chief Guest, Deputy British High Commissioner Lance Domm, praised the transaction, noting its role in mobilising private investment for development.
