Wahdat Poultry Farm secures Rs500m short-term financing facility from Saudi Pak

Wahdat Poultry Farm Limited has inked an offer letter with Saudi Pak Industrial and Agricultural Investment Company for a Rs500mn short-term credit line, according to a notice filed with the Pakistan Stock Exchange. The company said it made the filing under Section 96 of the Securities Act, 2015 and Clause 5.6.1 of the PSX Rule Book to inform the exchange, shareholders and investors.

The facility is priced at 3-month KIBOR plus 1.5% a year and its limit runs for three years. Each drawdown carries a 120-day tenor, with principal repaid in one lump sum when each tranche matures and markup paid quarterly in arrears. The arrangement is backed by a charge over current assets, both existing and future, and a 25% margin applies.

According to the company, the funds will go toward working capital needs and should help strengthen its working capital position. Wahdat Poultry Farm also said it will keep the exchange, shareholders and investors updated on any further material developments.