AGHA approves restructuring finance facilities worth Rs23.2bn

October 01, 2025 (MLN): The Board of Directors of Agha Steel Industries Limited (PSX: AGHA) has approved the restructuring of aggregate finance facilities worth Rs23.2 billion with banks and financial institutions. 

It has also authorized management to finalize Sukuk restructuring under Shariah guidelines, with the option of issuing a secondary Sukuk for the deferred component.

The restructuring framework, developed in consultation with the financiers, is aimed at improving the Company's financial sustainability and operational stability.

The key features include:

• Conversion of certain short-term borrowings into long-term obligations
• A 10-year tenor inclusive of a 3-year moratorium on principal repayments
• Mark-up already accrued up to the restructuring date shall remain deferred for a period of five years, with repayment to commence from the sixth year onwards
• Mark-up accruing during the first five years post-restructuring shall continue to accrue but shall also remain unpaid during this period, with servicing to commence from the sixth year onwards along with the deferred portion
• From the sixth year onwards, all deferred and accrued mark-up shall be amortized and serviced over the remaining tenor of the facility, in line with Shariah-compliant modalities.
• The Mi.DA® project is planned to be completed through available insurance proceeds and prudent internal cash flow generation.

Management will review the viability of the restructuring within one year, depending on market conditions.

If circumstances are unfavorable, divestment proceeds may be used for early debt repayment, helping reduce net debt, improve liquidity, and ensure business continuity through strategic financial and operational realignment by the sponsors.

The Board also appreciated the equity injection already made by the Majority Sponsor for the revival of the plant operations, which has strengthened the Company's capital structure and underpinned its long-term viability.

The approved plan demonstrates the Company's commitment to financial prudence, improved governance, and long-term value creation.

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