Dubai Islamic Bank (DIB) has successfully completed USD 101 million in financing for D.G. Khan Cement Company Limited (DGKC) to facilitate the acquisition of Rafhan Maize Products Company Limited (RMPL). The financing was structured as a USD 101 million Commodity Murabaha Facility, enabling the Nishat Group to acquire a majority stake in RMPL from the USA-based Ingredion Inc.
DIB’s Role in the Landmark Transaction
DIB acted as the Sole Mandated Lead Advisor, Shariah Advisor, Arranger, and Financier for this acquisition financing transaction. The successful completion reflects the strength of DIB Group’s platform as an international Islamic bank with deep local market expertise, institutional strength, and extensive Islamic finance capabilities. It further underscores the Bank’s ability to structure and execute sophisticated Shariah-compliant financing solutions for Pakistan’s leading corporates.
CEO’s Statement on the Achievement
Speaking on the occasion, Muhammad Ali Gulfaraz, CEO DIB Pakistan, highlighted: “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.”
Collaboration and Advisory Support
The successful execution of this complex transaction was made possible through close collaboration between DIB, DGKC, and buy-side M&A advisor Dada Partners. Mohsin Tayebaly & Co. acted as Pakistani Law Legal Counsel, while Hogan Lovells served as English Law Legal Counsel. This landmark transaction is another huge success for DIB’s strong investment banking team and demonstrates the power of DIB to offer unique strategic solutions for clients in Pakistan.
Nishat Group’s Strategic Move
DIB Group wishes to acknowledge the constructive engagement and cooperation of the management of DGKC and the trust placed in DIB by Nishat Group throughout the transaction process, which was instrumental in navigating the complexities of a transaction of this nature and scale. We wish Nishat Group the best in making a success out of this important strategic move.
Broader Economic Context
This transaction comes amid external financing pressures for Pakistan, with Saudi Arabia extending a $5 billion deposit and adding $3 billion support for Pakistan. The deal highlights the growing role of Islamic finance in facilitating large-scale corporate acquisitions in the country.
