Agha Steel Industries rolls out Rs5 bn Sukuk.
KARACHI -- Agha Steel Industries Limited (ASIL) intends to issue OTC listed, rated and secured Sukuk of up to Rs5 billion (inclusive of Green Shoe option of Rs1 billion) for the tenure of six years inclusive of a grace period of two years, in order to fulfill its expansion plans and investment in futuristic technologies.
The company has mandated Habib Bank Limited and Bank AL Habib Limited as mandated lead advisors and arrangers for the transaction.
Specifically, identified Musharika assets are set to be utilized under a qualified Shariah advisory board. The company intends to receive bids from 10 to 30 April 2018 from qualified institutional buyers.
Agha Steel Industries Executive Director Hussain Agha notes 'the company, through this initiative shall be able to invest in technologies which will make ASIL at least 30 per cent more energy efficient than the average manufacturer within the domestic industry. Most importantly, it is ASIL's goal that its prospective investors attain the best value proposition in respect to our strategic vision of an Initial Public Offering (IPO) soon.'
The proceeds of the Sukuk will be utilized by the company to fund a portion of costs associated with balancing, modernisation and replacement ('BMR') activities to existing and new facilities for an increase in production capacity and efficiency. The company shall also commission a new rolling mill unit increasing the annual re-rolling capacity of the company from 150,000 MT to 650,000 MT.
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|Publication:||Pakistan Today (Lahore, Pakistan)|
|Date:||Apr 10, 2018|
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