KARACHI: Dubai Islamic Bank (DIB) Group has arranged a $101 million Sharia-compliant financing facility to support DG Khan Cement Company Ltd’s acquisition of a majority stake in Rafhan Maize Products Company Ltd from US-based Ingredion Inc.
The financing was structured as a commodity Murabaha facility and enabled Nishat Group, the parent group of DG Khan Cement, to complete the transaction, according to a statement issued on Wednesday.DIB acted as sole mandated lead adviser, Sharia adviser, arranger and financier for the deal.
The transaction marks one of the larger acquisition financings in Pakistan’s corporate sector this year and highlights the growing role of Islamic finance structures in mergers and acquisitions, the statement said.
Muhammad Ali Gulfaraz, chief executive officer of DIB Pakistan, said the transaction reflected the bank’s focus on providing Shariah-compliant financing solutions for corporate clients undertaking strategic acquisitions.
The deal involved coordination among multiple advisers. Dada Partners acted as buy-side mergers and acquisitions adviser to the purchaser, while Mohsin Tayebaly & Co served as Pakistani legal counsel and Hogan Lovells advised on English law aspects of the transaction.
Neither DG Khan Cement nor DIB disclosed additional financial terms of the acquisition beyond the financing facility.
