At-Tahur Limited (ATL) has announced the issuance of Islamic Sukuk III Certificates amounting to PKR 900 million to meet its working capital requirements, according to a notice submitted to the Pakistan Stock Exchange (PSX). The issuance will be carried out in accordance with the guidelines set by the Securities and Exchange Commission of Pakistan (SECP) and the Sukuk (Privately Placed) Regulations, 2017.
The dairy processing company, which operates under the brand name Prema, stated that the Sukuk will be priced at three-month KIBOR plus 1.3 percent per annum. The base rate will be reset quarterly in line with the Karachi Inter Bank Offered Rate (KIBOR), aligning the instrument’s returns with prevailing interbank market benchmarks. The structure reflects the increasing use of Shariah-compliant debt instruments by non-financial corporates seeking flexible funding solutions within Pakistan’s evolving Islamic capital market framework.
According to the disclosure, the funds raised through the Sukuk will be deployed to manage the company’s working capital needs, supporting operational continuity and liquidity management. In capital-intensive sectors such as dairy processing, access to structured financing plays a critical role in sustaining supply chain operations, procurement cycles and distribution networks.
A notable feature of the issuance is a PKR 200 million green option component, underscoring the company’s stated focus on sustainable financing practices. The green option signals alignment with broader environmental, social and governance considerations that are gradually shaping corporate funding strategies in Pakistan. While details of specific green allocations were not outlined in the notice, the inclusion of a green tranche highlights a growing appetite for sustainability-linked instruments within the domestic debt market.
The Sukuk will be issued through private placement to qualified institutional buyers, a route commonly adopted for corporate debt offerings seeking targeted participation from financial institutions and investment funds. The redemption schedule has been structured on a quarterly basis over the tenor of the instrument, commencing April 1, 2026. The principal amount stands at PKR 900 million, with quarterly rental payments of PKR 26.52 million.
The company also noted that the issuance is backed by a strong credit rating from VIS Credit Rating Company, providing additional assurance to prospective investors regarding ATL’s credit profile and repayment capacity. Credit ratings remain a key consideration for institutional buyers assessing risk exposure in privately placed Sukuk transactions.
At-Tahur Limited, headquartered in Lahore, operates as a milk and dairy processing company and markets its products under the Prema brand. The move to raise funds through Islamic Sukuk reflects a broader trend among Pakistani corporates leveraging Shariah-compliant financing tools to diversify funding sources while maintaining regulatory compliance.
As Pakistan’s Islamic finance ecosystem continues to expand, corporate Sukuk issuances are playing an increasingly prominent role in deepening the local capital market. ATL’s PKR 900 million Sukuk III offering adds to this trajectory, combining working capital optimization with structured, regulation-aligned financing.
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