Ahmed & Qazi is pleased to announce that it has been engaged by a syndicate of banks and DFIs for the extension of a PKR 1.4 billion syndicated Islamic hashtag#tijarah facility to a leading hashtag#textile & apparels company. ๐งต
With a short-term tenor, the hashtag#syndicated facility will be injected into the operational hashtag#capital cycle of the borrower in multiple tranches, all built into the primary deal structure.
Each tranche will have its own independent repayment cycle, and ๐ฌ๐๐ฏ๐๐ซ๐๐ฅ ๐ข๐ฌ๐จ๐ฅ๐๐ญ๐๐ ๐ซ๐๐ฉ๐๐ฒ๐ฆ๐๐ง๐ญ ๐๐ฒ๐๐ฅ๐๐ฌ ๐ฐ๐ข๐ฅ๐ฅ ๐ซ๐ฎ๐ง ๐๐จ๐ง๐ญ๐๐ฆ๐ฉ๐จ๐ซ๐๐ง๐๐จ๐ฎ๐ฌ๐ฅ๐ฒ during the facility term. ๐
Under the tijarah structure, for each disbursement, the lenders’ investment agent will purchase a shipment ๐ข of textile goods and hashtag#fabrics from the borrower, and also take possession of the goods at a designated delivery point. Subsequently, the borrower will be appointed as the tijarah agent by the investment agent for the purpose of selling these hashtag#shipments to end customers, after which it will pass on the sale proceeds to the lenders to settle the facility.ย ๐ข
For the purpose of risk mitigation under the tijarah, a corporate hashtag#guarantee will be obtained from the borrower to shield ๐ก๏ธ against the possibility of non-payment by the end customers.
A&Q team for this deal is led by Nazif Ahmed and Altan Ahmed, who are assisted by a team of associates at the firm.
