Commodity Murabaha: DIB Group Secures USD 101 Million Financing for DG Khan Cement Acquisition
Islamic financing facility supports Nishat Group’s majority stake acquisition in Rafhan Maize Products, highlighting DIB’s expertise in complex Shariah-compliant transactions.
DIB Group announces USD 101 million Islamic financing for DG Khan Cement’s acquisition of Rafhan Maize Products.
Commodity Murabaha financing has enabled D.G. Khan Cement Company Limited (DGKC) to secure a USD 101 million Shariah-compliant facility for the acquisition of a majority stake in Rafhan Maize Products Company Limited (RMPL), marking one of Pakistan’s significant Islamic investment banking transactions.
The financing was arranged by DIB Group through a USD 101 million Commodity Murabaha Facility, allowing the Nishat Group to acquire the majority shareholding in RMPL from US-based Ingredion Inc.
DIB served as the Sole Mandated Lead Advisor, Shariah Advisor, Arranger, and Financier for the transaction. The bank said the deal demonstrates its ability to structure and execute complex Islamic financing solutions for leading corporate clients while ensuring full compliance with Shariah principles.
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Muhammad Ali Gulfaraz, Chief Executive Officer of DIB Pakistan, said the financing represents another milestone for the bank’s investment banking division. He added that the successful completion of the transaction reflects DIB’s capability to deliver tailored financing solutions that help clients complete strategic acquisitions through Islamic finance.
The transaction involved close coordination between DIB, DG Khan Cement, and buy-side mergers and acquisitions adviser Dada Partners. Mohsin Tayebaly & Co. acted as Pakistani legal counsel, while Hogan Lovells provided English law legal advice.
DIB said the transaction highlights the strength of its international Islamic banking platform, combining global expertise with local market knowledge to support major corporate investments in Pakistan.
The bank also acknowledged the cooperation of DG Khan Cement’s management and thanked the Nishat Group for placing its trust in DIB throughout the acquisition process. It expressed confidence that the investment will contribute to the long-term success of the strategic acquisition.
