Pakistan's Fauji Group, parent company of Fauji Cement Co Ltd (FCCL) and Askari Cement Ltd (ACL), has announced the signing of PKR37.4bn (US$212.2m) syndicated term loan facilities for an expansion programme from a local banking consortium, led by Habib Bank Ltd (HBL).
The facilities, which have a combined project cost of PKR60bn (including a debt component of PKR37.4bn), will be used to enhance the company's total production capacity to 10Mta, making it the second-largest cement producer in the region. The expansion projects of FCCL and ACL are situated at DG Khan (Punjab) and Nizampur (Khyber Pakhtunkhwa), respectively.
The signing ceremony for the credit facilities was held on 27 December 2021. Other consortium members include Faysal Bank Ltd, Bank Alfalah Ltd, National Bank of Pakistan, Bank of Punjab, Bank Al-Habib, Askari Bank, MCB Bank Ltd, Habib Metropolitan Bank of Khyber and First Women Bank Ltd.
The initiative is one of the most significant syndicated financing projects in the cement sector by a banking consortium in Pakistan achieved in a record time. The expansion projects and the potential merger of both the companies will see FCCL as one of the most prominent cement players in Pakistan.
