Fauji Cement Company Limited (FCCL) has repaid Rs3.367 billion against its long-term loan ahead of schedule. The move is expected to lower the company’s debt servicing costs.
The company disclosed the development in a material information notice submitted to the Pakistan Stock Exchange (PSX) on Tuesday, November 10, 2026.
Fauji Cement Makes Early Loan Repayment
According to the disclosure, FCCL repaid the amount against a long-term financing facility. The loan carries an interest rate linked to the Karachi Interbank Offered Rate (KIBOR).
The facility was obtained from a consortium of banks. However, FCCL did not identify the participating banks.
The company said the early settlement would help reduce its debt servicing costs. As a result, it expects some relief from its financing burden.
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FCCL did not disclose the remaining loan balance. It also provided no details about any further repayment plans.
Repayment Expected to Reduce Financial Costs
The early payment reduces FCCL’s outstanding long-term borrowing. It is also expected to lower interest expenses linked to the facility.
Since the loan carries a KIBOR-based rate, its servicing costs depend on movements in the benchmark rate. Therefore, the repayment could reduce the company’s exposure to borrowing costs.
However, FCCL did not disclose the expected annual savings. The company also did not indicate whether it plans to make further early repayments.
FCCL Submits Disclosure to PSX
FCCL made the disclosure under Section 96 of the Securities Act, 2015. It also cited Regulation 5.6.1 of the Pakistan Stock Exchange Regulations.
Company Secretary Brigadier Kashif Naveed Abbasi (SI (M), Retd) signed the notice.
The company said it had shared the information with the exchange’s TRE Certificate Holders. This was done in line with regulatory requirements.
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