Engro Chemical Pakistan Limited has signed a rupee syndicate loan of Rs 18.3 billion and an Islamic US dollar facility worth 150 million dollars marking the financial closure of its landmark financial plan to raise approximately $1.0 billion to construct a brand new world class Ammonia, Urea fertiliser complex at Daharki, District Ghotki, Sindh.
A statement here on Thursday said that the other sources of debt include a Multilateral Debt facility of $85m, issuance of Term Finance Certificates worth Rs 4 billion, Islamic Sukkuk worth Rs 3 billion and a sub-ordinate Term Finance Certificate worth Rs 6 billion.
It said that the sources of equity include Rights issues and profit retention.
The participants of the Islamic US dollar Facility are Dubai Islamic Bank, Citi Islamic Investment Bank, Standard Chartered Bank, National Bank of Pakistan, Habib Bank Limited and SAMBA Financial Group.
This new investment by Engro will create new job opportunities and will contribute significantly to the growth of the agricultural sector in Pakistan. We thank the financial community for their robust support."
The new Ammonia, Urea fertiliser complex will have estimated capacity of approximately 1.3 million tons of urea per annum.
The Government of Pakistan in January 2007 allocated the gas for this project after a bidding process, which was won by Engro.
The new plant is expected to commence operations in the first half of 2010.
The statement further pointed out that Engro's market share for Urea is expected to increase from 19% today to 35% in 2011 when the new plant will be operational for full year.