MTC Advises Financiers On PKR 5.5 Billion Distillery Project Financing

Mohsin Tayebaly & Co. was engaged as transaction legal counsel with respect to the finance facilities in the aggregate amount of up to PKR 5,500,000,000/- (Pak Rupees Five Billion Five Hundred Million) being availed by Sheikhoo Sugar Mills Limited from a consortium of banks / financial institutions, for which purpose, Meezan Bank Limited has been appointed as the Investment Agent on behalf of the Islamic financiers and MCB Bank Limited has been appointed as the Syndicate Agent on behalf of the conventional financiers as well as the LC Opening Bank, the Security Agent and the Intercreditor Agent on behalf of all financiers.

The facilities comprise of (i) a mark-up based syndicated facility in the aggregate amount of up to PKR 4,100,000,000/- (Pak Rupees Four Billion One Hundred Million); (ii) financing under the Islamic mode of diminishing Musharaka in the aggregate amount of up to PKR 1,400,000,000/- (Pak Rupees One Billion Four Hundred Million); and (iii) a non-funded facility by way of letter(s) of credit in the aggregate amount of up PKR 5,500,000,000/- (Pak Rupees Five Billion Five Hundred Million) (being a sub-limit of the mark-up based syndicated facility and the Islamic facility).

The facilities are intended to be utilized for the purposes of partially financing the construction and commissioning of an ethanol distillery plant based on sugarcane molasses, having an installed capacity of approximately 125,000 (one hundred twenty five thousand) litres of extra neutral alcohol (ENA) grade ethanol per day, to be situated at Anwar Abad (Patti Naich), Tehsil District Kot Addu, Punjab, Pakistan.

MTC’s team in this matter was led by Vaseeq Khalid (Partner) and included Kamil Tayebaly (Senior Associate) and Arsalan Abid Bachani (Associate).