Meezan Bank and Hyundai Nishat Motor sign Rs.5.6 billion Islamic Finance Facility

November 1, 2018 (MLN):  Meezan Bank, Pakistan’s first and largest Islamic bank and Hyundai Nishat Motor (Private) Limited - a joint venture among three leading international business; Nishat Group, Sojitz Corporation (Japan) and Millat Tractors Ltd, have recently signed an agreement for Rs.5.6 billion Islamic Finance Facility.

Meezan Bank is the sole Lead Arranger of this Islamic Finance Facility for Hyundai Nishat, to finance its upcoming vehicle manufacturing project.

The state-of-the-art manufacturing plant is being installed in the industrial estate of Faisalabad, spanning over an area of approximately 70 acres with an investment outlay estimated at over Rs.15 billion. T

he project is being set up under the auspices of the Automotive Development Policy (2016-21) announced by the Government of Pakistan.

Ground breaking of the project was done in December last year and commercial operations are scheduled to begin by the end of 2019.

Hyundai Nishat aims to introduce a range of globally acclaimed models of Hyundai in both passenger and light commercial category through a nationwide network of 3S dealerships.        

The new automotive policy (2016-21) has attracted many new automakers to Pakistan sensing the market’s high growth potential. Leading international brands like Hyundai, KIA and Renault along with other Chinese auto manufacturers have responded very positively to the auto policy incentives and several projects are now at various stages of development.

The signing ceremony, held in Dubai, was attended by Mr. Irfan Siddiqui, President and CEO - Meezan Bank and Mian Hassan Mansha, CEO - Hyundai Nishat.  At the occasion, Mian Muhammad Mansha, Chairman - Nishat Group, Mian Raza Mansha, Chairman - Hyundai Nishat and Mr. Hiroto Murai, Executive Officer - COO Automotive Division of Sojitz Corporation were also present.

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