Key Takeaways
- Wahdat Poultry Farm Limited has secured a Rs. 500 million financing facility.
- The deal is with Saudi Pak Industrial and Agricultural Investment Company.
- The facility will support the company’s working capital and growth.
Wahdat Poultry Farm Limited has secured a significant financial boost through a Rs. 500 million financing facility from Saudi Pak Industrial and Agricultural Investment Company Limited. This move is aimed at bolstering the company's working capital and providing additional financial flexibility for its ongoing operations and growth.
According to a disclosure submitted to the Pakistan Stock Exchange on September 16, the company has entered into an offer letter with Saudi Pak for the financing facility. The agreement allows for each drawdown for a period of up to 120 days, with a markup of 3-month KIBOR plus 1.5 percent per annum.
The facility has a three-year expiry period and is secured through a first-ranking pari passu and joint pari passu charge by way of hypothecation over the company’s present and future current assets, with a 25 percent margin. Principal amounts will be repaid through bullet payments upon maturity of each tranche, while markup will be paid quarterly in arrears.
Wahdat Poultry stated that the financing will be used to meet its working capital requirements and support its business operations and growth. The company emphasized the importance of this deal in enhancing its financial stability and operational efficiency.
The financing facility is expected to provide Wahdat Poultry with the necessary funds to expand its operations, invest in new technologies, and meet the increasing demand for poultry products in the market.
The deal with Saudi Pak Industrial and Agricultural Investment Company is a testament to the company's strong financial standing and its ability to secure significant investments from reputable international partners.
