Ismail Industries to invest in Ismail Resin Pvt Ltd for setting up a Polyester Resin Manufacturing Plant

March 15, 2021 (MLN): The Ismail Industries has decided to invest in the recently incorporated associated/subsidiary company Ismail Resin (Private) Limited, which has the intention of setting up a Polyester Resin (PET Resin) Manufacturing Plant with a capacity of 108,000 tons per annum, keeping in view of growing demand.

This new manufacturing facility will not only meet the local growing demand of PET Resin in Pakistan but would capture the global market as well.

The investment will be made in the form of equity for an amount up to Rs 1.5 billion divided into 150 million ordinary shares of Rs 10 each.

In this regard, the Board of Directors of Ismail Industries, in its meeting held today approved to issue Cross Corporate Guarantee up to Rs 4.7 billion for its subsidiary Ismail Resin (Private) Limited, subject to the approval of Shareholders of the company.

The Board further resolved to issue a guarantee (in the form of Sponsors Support Agreement) to the lenders of its subsidiary company for investment in the form of equity or subordinated debts to cover the cost over-run or to cover the funding shortfall or any other obligation that may arise under financing documentation/agreements executed with them.  Such sponsor obligation shall be for a period of the tenure of the project loan, or such other date as may be prescribed in the Sponsor Support Agreement.

The Board also decided to issue a Cross Corporate Guarantee up to Rs 600 million to the lender of its subsidiary company Hudson Pharma (Private) Limited which has the intention of setting up Pakistan's first vitamins and minerals premix facility at their existing manufacturing facility located at Port Qasim Authority, Karachi.

Currently, all premix requirements are imported, and this initiative will result in import substitution providing good savings in terms of foreign exchange, the company’s notice to PSX said.

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