The Board of Directors of Fauji Foods Limited (FFL) has sanctioned a loan of Rs. 350 million to its wholly owned subsidiary, M/S Fauji Infraavest Foods Limited. This financial support is aimed at meeting the subsidiary’s working capital requirements and covering specific capital expenditures.
The loan will carry a bi-annual mark-up on the principal amount, calculated at 6 months KIBOR plus 1 percent. This arrangement ensures that Fauji Infraavest Foods Limited can continue its operations and undertake necessary investments for growth.
In accordance with SECP SRO 1239(1)/2017 dated December 06, 2017, Fauji Foods Limited, as the holding company of its wholly owned subsidiary, is exempt from requiring shareholder approval for this transaction.
Fauji Foods Limited, a subsidiary of Fauji Fertilizer Bin Qasim Limited (FFBL), is primarily engaged in the processing and sale of toned milk, milk powder, fruit juices, and other dairy and food products. This loan reflects FFL’s commitment to supporting its subsidiary and ensuring its financial stability and operational efficiency.