Fauji Meat: Financial close expected this month

Published: February 21, 2015
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The project cost will be funded through a combination of debt and equity in the ratio of 70:30. STOCK IMAGE

The project cost will be funded through a combination of debt and equity in the ratio of 70:30. STOCK IMAGE

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 21st, 2015.

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Reader Comments (2)

  • Woz Ahmed
    Feb 22, 2015 - 1:04AM

    Another army enterprise.

    Guys stick to guarding our borders not this sort of butchery !Recommend

  • Taimoor Khan
    Mar 30, 2015 - 11:02PM

    Its not an army subsidry.. Fauji foundation all enterprises including FFC, askari cement, Ffbl, askari bank, fauji meat, fauji coal basically give all dre profits to army welfare trust n foundation hospitals.. These welfare organization are for families, widows or parents of shaheeds. Shaheed children get free education n health.. Not a single rupee goes to army.. Please bro do a bit research because all foundation subsidiaries are providing business activities.. FML will provide employment as well as daily local procurement of 1100 sheeps n 650 cattle.. Not a single penny will go to army.. Just foundation which is created for benefits of shaheeds family..Recommend

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