DIB Group has successfully arranged a USD 101 million Shariah-compliant financing facility for D.G. Khan Cement Company Limited (DGKC) to support the acquisition of a majority stake in Rafhan Maize Products Company Limited (RMPL) from Ingredion Inc. The transaction highlights the growing role of Islamic investment banking in facilitating large-scale corporate acquisitions in Pakistan.
KARACHI: DIB Group has announced the successful completion of a USD 101 million Islamic financing transaction for D.G. Khan Cement Company Limited (DGKC) to facilitate the acquisition of a majority stake in Rafhan Maize Products Company Limited (RMPL) from US-based Ingredion Inc.
The financing was structured as a USD 101 million Commodity Murabaha Facility, enabling the Nishat Group to complete one of the notable corporate acquisition transactions in Pakistan’s industrial sector.
DIB Acts as Sole Lead Arranger for Landmark Transaction
DIB served as the Sole Mandated Lead Advisor, Shariah Advisor, Arranger, and Financier for the acquisition financing.
The bank said the transaction demonstrates its capability to structure and execute complex Shariah-compliant financing solutions for Pakistan’s leading corporate groups while leveraging its international Islamic banking expertise.
The financing also reflects DIB Group’s strong presence in Pakistan’s investment banking sector and its ability to support large-scale mergers and acquisitions through innovative Islamic financial structures.
Financing Supports Nishat Group’s Strategic Expansion
The Islamic financing facility enabled the Nishat Group to acquire a controlling stake in Rafhan Maize Products Company Limited, one of Pakistan’s leading food ingredients manufacturers, from Ingredion Inc., a US-based global ingredient solutions company.
The acquisition marks a significant strategic expansion for the Nishat Group as it diversifies its business portfolio through investment in Pakistan’s food processing industry.
DIB Highlights Strength in Islamic Investment Banking
Commenting on the transaction, Muhammad Ali Gulfaraz, Chief Executive Officer of DIB Pakistan, said the financing represents another important milestone for the bank’s investment banking division.
“This milestone represents another significant achievement for DIB’s Investment Banking team and further demonstrates our ability to deliver bespoke strategic financing solutions that support clients in executing transformational transactions while remaining fully compliant with the principles of Islamic finance.”
He added that the transaction highlights DIB’s ability to provide customized financing solutions for complex corporate transactions while maintaining full compliance with Islamic finance principles.
Multiple Advisors Supported the Acquisition
The successful execution of the transaction involved collaboration among several advisory firms.
Dada Partners acted as the buy-side mergers and acquisitions advisor, while Mohsin Tayebaly & Co. served as Pakistani legal counsel.
Hogan Lovells acted as English law legal counsel for the transaction.
DIB Reaffirms Commitment to Corporate Financing
DIB Group said the successful completion of the financing further strengthens its position as a leading provider of Shariah-compliant investment banking solutions in Pakistan.
The bank also acknowledged the cooperation of the management teams of D.G. Khan Cement Company Limited and the Nishat Group, stating that their collaboration played a key role in completing the transaction successfully.
According to DIB, the financing demonstrates how Islamic banking can facilitate strategic corporate acquisitions while supporting long-term business growth and investment in Pakistan’s economy.