NML’s shareholders approve to provide upto PKR 2.25 billion sponsor support to Nishat Dairy

December 15, 2020 (MLN): The shareholders of Nishat Mills Limited (NML) in their extraordinary general meeting, held on Dec 15, 2020,  have resolved that the Company be and is hereby authorized to provide sponsors' support to Nishat Sutas Dairy Limited ("NSDL"), an associated company by way of Corporate Guarantee for an amount of up to PKR 2.25 billion for a tenure of 11 years starting from the date of issue of Corporate Guarantee,

As per the notice sent to PSX, the Corporate Guarantee is to be issued by the Company in favor of financial institutions/lenders of NSDL to secure financial assistance to be extended to NSDL as per terms and conditions disclosed to the members.

It has been further resolved that in the event the Company is called upon by the lenders of NSDL for repayment of money provided to NSDL as a result of enforcement of Corporate Guarantee, the Company shall recover the full amount paid by it from NSDL with mark up of 0.5% per annum above the average borrowing cost of the Company till the date of payment from NSDL, as may be mutually agreed.

The shareholders of NML resolved further that this resolution shall be valid for a period of four (4) years starting from the date of approval by members and the Chief Executive Officer and/or Chief Financial Officer and/or Company Secretary of the Company be and are hereby singly empowered and authorized to do all acts, matters, deeds and things, take any or all necessary actions including signing and execution of the agreement(s) and to complete all legal formalities as may be necessary or incidental expedient for the purpose of implementing the aforesaid resolutions.

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