Agha Steel Industries’ Board of Directors has approved the restructuring of finance facilities worth PKR 23.2 bln (USD 82 mln) with banks and financial institutions.
The plan, developed in consultation with lenders, aims to strengthen the company’s financial sustainability and operational stability. Management has also been authorized to finalize Sukuk, an Islamic financial certificate that functions similarly to a conventional bond but is structured to comply with Islamic law, with the option of issuing a secondary Sukuk for the deferred component.
Key measures include converting some short-term borrowings into long-term obligations with a 10-year tenor and a three-year principal moratorium. Accrued mark-up will remain deferred for five years, with repayments beginning in the sixth year, alongside servicing of new accruals.
The company noted that its Danieli micro-mill project will proceed using insurance proceeds and internal cash flows, while management will review the restructuring’s viability within a year. If market conditions remain challenging, divestment proceeds may be used for early debt repayment to reduce leverage, improve liquidity, and ensure business continuity.
Agha Steel operates an EAF plant in Port Qasim, Karachi, with an annual capacity of 450,000 tons for billets and 650,000 tons for rebar.
1 USD / 282.5 PKR
