KARACHI: A consortium of Pakistani corporate entities on Monday launched the country鈥檚 first, fully subscribed Rs2 billion ($7 million) Agri-Infrastructure Sukuk to bolster renewable energy efforts and enhance production of essential staple food items, with a ceremonial gong strike at the Pakistan Stock Exchange.
Sukuk are financial certificates, often referred to as Islamic bonds, that represent ownership in an asset or a collection of assets and are designed to be Sharia-compliant by adhering to Islamic law, which prohibits interest-based transactions (riba). Instead of interest, sukuk holders receive a share of the profits generated by the underlying asset.
The Shariah-compliant Sukuk is backed by a 100 percent principal credit guarantee from InfraZamin Pakistan, which mobilizes private investment in pioneering infrastructure. The financial certificate carries a long-term AAA rating by VIS Credit Rating Company and is fully subscribed by institutional investors, a major step toward sustainable financing via capital markets in the country鈥檚 agricultural sector.
The funds raised through the Sukuk, whose issuance is led by BankIslami Pakistan Limited as the mandated lead arranger, will be utilized to advance Sunridge Foods鈥 Balancing, Modernization, and Replacement (BMR) projects, focused on upgrading production facilities with sustainable and energy-efficient technologies, according to InfraZamin Pakistan.
鈥淜ey components of the BMR include the installation of 1MW wind turbines and a 0.5MW solar power plant to bolster Sunridge鈥檚 renewable energy efforts, alongside the construction of new silos and warehouses to substantially expand agricultural produce storage capacity,鈥 InfraZamin said in a statement.
鈥淎dditionally, the proceeds will provide working capital support for Sunridge鈥檚 critical wheat and rice processing plants in Karachi and Lahore, facilitating increased production of essential staple food items.鈥
On the occasion, Deputy British High Commissioner in Karachi Lance Domm lauded the initiative as a significant step toward climate-resilient and sustainable economic growth through capital market innovation.
鈥淭his Sukuk represents a significant step in expanding access to climate-friendly, Shariah-compliant finance in Pakistan鈥檚 agri-infrastructure sector,鈥 Domm said.
鈥淚t reflects growing confidence in the country鈥檚 capital markets and the role of partnerships in mobilizing private investment for development. The UK, through its support to InfraZamin and other financial institutions, remains committed to strengthening Pakistan鈥檚 financial ecosystem.鈥
InfraZamin Pakistan CEO Maheen Rahman highlighted the strategic importance of the transaction, saying it reflected their commitment to facilitating sustainable financing solutions that empower Pakistan鈥檚 agriculture sector.
鈥淏y providing a principal credit guarantee, InfraZamin strengthens investor confidence and unlocks capital market access,鈥 she said.
Amir Shahzad, chairman and executive director of Sunridge Foods, emphasized the operational and environmental benefits of the development at the ceremony.
鈥淎t Sunridge Foods, we are proud to be part of this landmark issuance that channels Islamic finance toward strengthening Pakistan鈥檚 agri-infrastructure,鈥 Shahzad said.
鈥淭his Sukuk enables us to modernize our production capabilities, invest in renewable energy, and significantly expand our storage and processing capacity for essential food staples. It is a testament to how purpose-driven partnerships can unlock sustainable growth in critical sectors like food and agriculture.鈥
The event at PSX underscored the collective vision of all stakeholders to foster innovative, Shariah-compliant financing avenues that drive Pakistan鈥檚 sustainable infrastructure and agricultural development, according to InfraZamin.
鈥淲e are pleased to play our role in the launch of Pakistan鈥檚 first Agri-Infrastructure Sukuk, marking a significant step forward in sustainable financing for the country,鈥 said Rizwan Ata, president and CEO of BankIslami.
鈥淭his transaction highlights the growing recognition of Shariah-compliant finance as a core tool for driving economic growth while supporting sustainable development.鈥
PSX Chairperson Dr. Shamshad Akhtar emphasized that Pakistan鈥檚 intersecting crises of climate vulnerability and food insecurity demand bold, homegrown solutions. She commended the launch of the Agri-Infrastructure Sukuk as a defining example of how private sector leadership and financial innovation, particularly within Islamic finance, can mobilize capital toward climate resilience and agricultural development.
鈥淸Such initiatives are] powerful catalysts for inclusive growth, food system transformation, and a sustainable future built on values, ingenuity, and collaboration,鈥 she was quoted as saying.
PSX CEO Farrukh Subzwari reaffirmed the Exchange鈥檚 commitment to transforming the capital market into a platform for purposeful solutions, especially in addressing climate risk, food insecurity, and the structural gaps facing Pakistan鈥檚 economy.
鈥淏anks, fund managers, corporates, regulators like SECP, and institutional investors must work together to build the ecosystem for sustainable finance,鈥 the statement quoted him as saying.
鈥淧SX will continue to serve not just as a marketplace, but as a catalyst for innovation, inclusion, and resilience鈥 where ideas translate into impact and capital is mobilized for national priorities.鈥