AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Fauji Foods Limited (FFL) has announced the approval of a PKR 350 million loan to its wholly owned subsidiary, Fauji Infraavest Foods Limited, to support its working capital and capital expenditures, as revealed in a company communication dated July 22, 2024.
According to information available from the Pakistan Stock Exchange (PSX), the Board of Directors of Fauji Foods met on July 22, 2024, and sanctioned the loan under the regulations established by Section 96 of the Securities Act, 2015, in conjunction with the Pakistan Stock Exchange Limited Rule Book. This financial move is aimed at enhancing the subsidiary’s operational capabilities without requiring shareholder approval, thanks to an exemption under SECP SRO 1239(1)/2017 dated December 6, 2017.
The terms of the loan include a bi-annual interest payment on the outstanding amount at a rate of 6 months KIBOR plus 1%. This strategic financial arrangement allows Fauji Infraavest Foods Limited to secure necessary funds for its ongoing and upcoming projects, ensuring sustained growth and operational efficiency.
In accordance with Section 96 of the Securities Act, 2015, and PSX regulations, there are no disclosures related to delay of inside information, third-party inside information, or transactions by managerial personnel.