Pakistan launches first-ever agri-infrastructure sukuk to boost food security and climate resilience

Pakistan has issued its first agri-infrastructure sukuk—valued at Rs 2 billion in a landmark step toward Shariah-compliant, climate-resilient financing for the country’s agriculture sector.

Launched by InfraZamin Pakistan, Sunridge Foods (Pvt) Limited, and BankIslami Pakistan, the sukuk was formally unveiled at the Pakistan Stock Exchange (PSX).

“This Sukuk not only boosts our capacity but also strengthens Pakistan’s food systems through sustainable and inclusive growth,” said Amir Shahzad, chairman and executive director of Sunridge Foods. The proceeds will fund Sunridge’s modernization efforts, including renewable energy projects and the construction of silos and warehouses to expand food storage and reduce emissions.

Structured under a robust governance framework, the instrument carries a 100% principal credit guarantee from InfraZamin Pakistan and holds a long-term AAA rating from VIS Credit Rating Company. Institutional investors led the fully subscribed issuance, signaling growing confidence in innovative Islamic finance products.

InfraZamin CEO Maheen Rahman described the transaction as “a transformative example of how credit guarantees can unlock access to capital markets for critical sectors like agriculture.” 

The funds will support Sunridge’s Balancing, Modernization, and Replacement (BMR) projects, including the installation of 1 MW wind turbines and a 0.5 MW solar power plant at their processing units in Karachi and Lahore.

“This Agri-Infrastructure Sukuk showcases the potential of Shariah-compliant instruments to channel capital toward national priorities,” said Rizwan Ata, CEO of BankIslami, the mandated lead arranger for the issuance.

Other key partners include AKD Securities as Financial Advisor, Al-Hilal Shariah Advisors for compliance oversight, and Pak Brunei Investment Company as Investment Agent and Trustee.