UBL Arranges Record PKR 25 Billion Sukuk for Engro Fertilizers in Landmark Islamic Financing Deal

KARACHI — United Bank Limited (UBL) has successfully arranged Pakistan’s largest short-term rated unsecured privately placed Sukuk, raising PKR 25 billion for Engro Fertilizers Limited in a landmark Islamic capital market transaction.

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The deal marks another major milestone in Pakistan’s Islamic finance sector and further strengthens UBL’s position as a leading arranger of Shariah-compliant financing solutions for major corporate clients.

Major Milestone in Islamic Capital Markets

The transaction, structured by United Bank Limited as Mandated Lead Advisor and Arranger, represents one of the most significant private-sector Islamic financing deals in recent years.

It follows the bank’s earlier successful collaboration with the Engro Group on large-scale Islamic financing initiatives, including the Deodar acquisition structure.

Strong Investor Demand and Oversubscription

The Sukuk was placed in the non-bank market and received exceptionally strong investor demand, achieving approximately two times oversubscription.

The strong response reflects growing investor confidence in both Engro Fertilizers Limited and UBL’s structuring capabilities in capital market transactions.

Key Stakeholders Attend Closing Ceremony

A ceremony marking the successful completion of the issuance was held at the Engro office, attended by senior executives from both organizations.

Representatives included Group CFO Farooq Barkat Ali and CFO Muhammad Imran Khalil from Engro, along with senior officials from UBL’s Corporate & Investment Banking and Investment Banking divisions.

Fast Execution and Market Impact

Executed within an accelerated timeframe, the Sukuk highlights UBL’s ability to deliver efficient, innovative, and Shariah-compliant financing solutions tailored to corporate needs.

The transaction is also expected to contribute to the continued development and deepening of Pakistan’s Islamic debt capital market.

Strengthening Islamic Finance in Pakistan

UBL emphasized its commitment to supporting transformative financial transactions that strengthen capital markets, promote economic growth, and expand Islamic financial instruments across Pakistan’s corporate sector.