August 23, 2022 (MLN): The Board of Directors of Fauji Foods Limited has authorized the company to borrow the total amount of Rs2.35 billion as a loan from Fauji Foundation, the company’s filing on PSX showed today.
In a meeting held yesterday, the board authorized the company to enter into the Shareholder Loan Agreement with Fauji Foundation for the said Loan, which shall be an unsecured subordinated shareholder loan to be provided by Fauji Foundation to the company for working capital requirements.
According to the notice, the loan shall be disbursed in one or more tranches as may be agreed with Fauji Foundation and shall be for the tenor ending on the second anniversary of the date of disbursement of each tranche, after which it will carry mark-up at the rate of 6 Month KIBOR +2% and will be payable on demand.
Fauji Foundation shall have the option to convert the said loan into equity at any time by written notice at par or lower value as set out in the Shareholder Loan Agreement and subject to necessary approvals, the notice read.
