Pakistan launches first Islamic agri-infrastructure bond to boost food security, green energy
$7 million Shariah-compliant Sukuk to fund solar, wind, and storage projects in major step toward sustainable agriculture
ISLAMABAD, Pakistan (MNTV) — Pakistan has issued its first-ever Islamic agri-infrastructure bond, marking a major breakthrough in climate-resilient finance and sustainable agriculture.
The 2 billion Pakistani rupees ($7.1 million) Sukuk—an Islamic financial certificate similar to a bond—was launched at a ceremony hosted at the Pakistan Stock Exchange.
The initiative is a collaboration between InfraZamin Pakistan, Sunridge Foods (Pvt) Limited, and BankIslami Pakistan. The Sukuk was fully subscribed by institutional investors and received a long-term AAA rating from a leading credit agency.
It is backed by a 100% principal guarantee from InfraZamin Pakistan, ensuring investor confidence and minimizing risk.
Funds raised will support Sunridge Foods’ expansion and sustainability plans under its “Balancing, Modernisation, and Replacement” (BMR) initiative.
Key projects include the installation of renewable energy systems—specifically a 1 MW wind turbine and a 0.5 MW solar power plant—to reduce the company’s carbon footprint.
The financing will also be used to build modern silos and warehouses to improve food storage capacity, addressing a long-standing challenge in Pakistan’s agricultural value chain.
Additional funds will support working capital needs for Sunridge’s wheat and rice processing facilities in Karachi and Lahore, two of the country’s key urban centers.
Sukuk, governed by Islamic financial principles, differ from traditional interest-based bonds by offering returns through profit-sharing or lease-based structures that comply with Shariah law. In this case, Al-Hilal Shariah Advisors ensured the issuance met religious guidelines.
BankIslami Pakistan served as the Mandated Lead Arranger, while AKD Securities acted as Financial Advisor. Pak Brunei Investment Company was appointed as both Investment Agent and Trustee, reflecting strong institutional backing.
The bond is being hailed as a milestone in merging Islamic finance with sustainable development. It not only supports Pakistan’s agricultural modernization but also aligns with broader climate goals and food security strategies in a country grappling with erratic weather patterns and supply chain inefficiencies.
As Pakistan continues to explore green finance options, this Sukuk represents a model for how religiously compliant financial tools can be leveraged to meet the twin challenges of economic development and environmental resilience.
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