With A&Q as legal counsel, a syndicate of banks have successfully disbursed a PKR 1 billion Islamic long-term facility to a leading pharmaceutical company with manufacturing facilities in Karachi, for the purpose of funding:
(1) the expansion of the borrower’s warehouse, and
(2) the extension of its ampoule line.
Being a shariah compliant transaction, the facility was structured on a diminishing musharaka (shirkat ul milk) over certain assets located in Quetta.
The security structure comprised mortgages over several immovable properties in Karachi and Quetta, a floating hypothecation over fixed assets, and a collection account arrangement held under lien.
A&Q team for the facility was led by Nazif Ahmed (Head — Corporate) and Altan Ahmed (Senior Associate), while the property aspect was handled by Faiza Khan (Senior Associate).
