Pakistan launches first fully subscribed PKR 2B agri-infrastructure Sukuk

In a historic move towards sustainable financing and agricultural development, InfraZamin Pakistan, Sunridge Foods (Pvt.) Limited, and BankIslami Pakistan marked the launch of Pakistan’s first fully subscribed PKR 2 billion Agri-Infrastructure Sukuk with a ceremonial gong strike at the Pakistan Stock Exchange (PSX).

The Sukuk, entirely subscribed by institutional investors, is Shariah-compliant and carries a long-term AAA credit rating, backed by a 100% principal credit guarantee from InfraZamin Pakistan.

The issuance represents a pioneering step in mobilizing Islamic finance through capital markets to enhance Pakistan’s food security, climate resilience, and agri-infrastructure, the companies said in a press release.

Led by BankIslami Pakistan as the mandated lead arranger, the Sukuk was developed with the support of a consortium of leading institutions, including InfraZamin Pakistan as the credit guarantor, AKD Securities as financial advisor, Al-Hilal Shariah Advisors for shariah compliance, Pak Brunei Investment Company Limited as Investment Agent and Trustee.

The Sukuk proceeds will support Sunridge Foods’ balancing, modernization, and replacement (BMR) projects, aimed at boosting production efficiency and sustainability. The upgrades include installation of 1 MW wind turbines and a 0.5 MW solar power plant to advance renewable energy adoption, construction of new silos and warehouses to expand agri-storage capacity, and working capital financing for wheat and rice processing plants in Karachi and Lahore.

UK support

Lance Domm, Deputy British high commissioner and chief guest at the event, praised the initiative as a landmark for green and inclusive growth.

“This Sukuk represents a significant step in expanding access to climate-friendly, Shariah-compliant finance in Pakistan’s agri-infrastructure sector,” he said. “It reflects growing confidence in the country’s capital markets and the role of partnerships in mobilising private investment for development.”

Maheen Rahman, CEO of InfraZamin Pakistan, highlighted the role of credit enhancement in unlocking market access. “This ceremony reflects our commitment to facilitating sustainable financing solutions that empower Pakistan’s agriculture sector. By providing a principal credit guarantee, InfraZamin strengthens investor confidence and unlocks capital market access.”

Amir Shahzad, Chairman & Executive Director of Sunridge Foods, emphasized the tangible impact. “This Sukuk enables us to modernize our production capabilities, invest in renewable energy, and significantly expand our storage and processing capacity for essential food staples.”

Rizwan Ata, President & CEO of BankIslami, underscored the significance of Shariah-compliant finance. “This transaction highlights the growing recognition of Islamic finance as a core tool for driving economic growth while supporting sustainable development.”