Home Business & Finance Agha Steel Industries rolls out Rupees 5 Billion Sukuk

Agha Steel Industries rolls out Rupees 5 Billion Sukuk

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KARACHI: Agha Steel Industries Limited (ASIL) intends to issue OTC listed, rated and secured Sukuk upto PKR 5 billion (inclusive of Green Shoe option of PKR 1 billion) for the tenor of six (6) years inclusive of a grace period of 2 years, in order to fulfill its expansion plans and investing in futuristic technologies making ASIL amongst the most efficient and sustainable player in the industry.

The Company has mandated Habib Bank Limited and Bank AL Habib Limited as Mandated Lead Advisors & 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 30th April 2018 from Qualified Institutional Buyers.

Hussain Agha, Executive Director at Agha Steel Industries, notes “the Company, through this initiative shall be able to invest in technologies which will make ASIL at least 30% more energy efficient player than the average manufacturer within the domestic industry. Most importantly, with the Grace of AlMighty, 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 portion of costs associated with balancing, modernization and replacement (“BMR”) activities to existing and new facilities for increase in production capacity and efficiency. The Company shall also to commission a new rolling mill unit increasing the annual re-rolling capacity of the company from 150,000 MT to 650,000 MT. Says in press release

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