InfraZamin Pakistan has announced a new strategic partnership with Sunridge Foods Limited, a subsidiary of Unity Foods Limited, to issue a PKR 2 billion Agri-Infrastructure Sukuk. This innovative financial instrument aims to support Pakistan’s agricultural infrastructure by providing Shariah-compliant financing to enhance food production capacity, integrate sustainable energy solutions, and promote food security.
This Sukuk issuance, fully secured through InfraZamin’s AAA-rated guarantee, represents a principal-protected investment opportunity for local and international investors. The capital raised will finance Sunridge Foods’ Balancing, Modernization, and Replacement (BMR) initiatives. These efforts are designed to bring high-efficiency technology to the company’s production facilities, ensuring sustainable and eco-friendly operations. Key enhancements include installing 1 MW wind turbines and a 0.5 MW solar power plant, marking Sunridge Foods’ commitment to renewable energy integration and a lower carbon footprint.
The investment in BMR will also lead to the construction of new silos and warehouses, significantly increasing storage capacity for key agricultural produce. These upgraded storage solutions will enhance Sunridge Foods’ ability to maintain a stable supply of essential food items and reduce wastage in the supply chain. Additionally, the funds raised will support working capital needs for critical wheat and rice processing facilities located in Karachi and Lahore, allowing the company to scale its production of staple food items to meet growing demand.
In a statement, Maheen Rahman, CEO of InfraZamin Pakistan, highlighted the broader impact of this initiative. “This transaction reflects InfraZamin’s commitment to supporting the development of Pakistan’s agriculture sector. By providing a 100% principal credit guarantee, we are facilitating access to capital markets and fostering sustainability through green energy initiatives and food security,” Rahman said. She emphasized that InfraZamin’s backing will not only provide financial security for investors but also enable agricultural businesses to access the capital required for transformative improvements in their operations.
Farrukh Amin, CEO of Unity Foods, expressed his optimism about the collaboration. “Our partnership with InfraZamin and the launch of Sunridge’s first agriculture infrastructure Sukuk is a transformative step for Unity Foods,” he stated. “This investment paves the way for us to enhance our facilities with cutting-edge, renewable energy solutions, enabling us to meet the rising demand for our products. It’s a bold stride toward operational efficiency and reflects our unwavering commitment to achieving Net Zero by 2050.” Amin’s remarks underscore Unity Foods’ dedication to sustainability, as the company aims to lead the sector in environmental responsibility while scaling its operations to better serve the nation.
This Agri-Infrastructure Sukuk represents an innovative approach to funding agriculture-focused projects in Pakistan. With the demand for food security and sustainable energy rising globally, this Sukuk issuance aligns with both national and international priorities. By supporting the development of Pakistan’s agricultural landscape, the initiative promises long-term benefits for the environment and enhances the nation’s food security infrastructure.
The issuance of the Sukuk, while contingent upon the Securities and Exchange Commission of Pakistan (SECP) approval and Sunridge Foods’ completion of all necessary transaction conditions, marks a milestone in agricultural finance. Once approved, it will set a precedent for future Shariah-compliant financial products in Pakistan’s agriculture sector, promoting both financial inclusion and sustainable development.
Through this collaboration, InfraZamin and Sunridge Foods are setting an example of how the financial sector can be leveraged to support national goals, including sustainability, economic stability, and improved food security. This Sukuk issuance could serve as a model for similar projects across Pakistan, ultimately contributing to a stronger, more resilient agriculture sector.