Fauji Meat: Financial close expected this month

KARACHI:

Fauji Meat, a wholly owned subsidiary of Fauji Fertilizer Bin Qasim (FFBL), is expected to achieve financial close this month, an FFBL notice to the Karachi Stock Exchange (KSE) said.

According to the notice, the project cost will be funded through a combination of debt and equity in the ratio of 70:30. The debt component will comprise Islamic financing of Rs3.5 billion.

The company had shown interest in setting up the meat subsidiary in December 2014 with a total cost of Rs6.4 billion.

At that time, FFBL anticipated that it would secure the required financing in the first half of 2015 and operations would start in the fourth quarter.

Analysts say FFBL wants to diversify its business owing to the problems of gas shortage and haphazard growth in the fertiliser sector of the country.

Published in The Express Tribune, February 21^st, 2015.

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