KARACHI (February 12 2004): Shakarganj Mills Ltd (SML) has raised Rs 1.4 billion through local banks and financial institutions to expand its existing plant increasing its crushing and industrial alcohol capacity.

SML is expanding its sugarcane crushing capacity by 8,000 tonnes per day and industrial alcohol production capacity by 80,000 litres per day by setting up a new sugar mill and distillery in Akrianwala District situated at 48 km from Jhang. Total project cost is estimated at Rs 1,400 million.

The project is being financed by a combination of Rs 1,050 million debt and Rs 350 million equity.

The company made a detailed presentation to the lending banks showing the satellite facility work in progress.

The banks expressed their confidence in the financial strength of the Company and credibility of sponsors as well as satisfaction over the pace of work in the satellite facility financed by them.

A small and impressive ceremony was held at a local hotel on Wednesday to mark the successful closure of a 7-year 'Syndicated Term Finance Facility' for Shakarganj Mills Ltd.

This transaction was advised and arranged by Pak Oman Investment Company along with United Bank Ltd, Muslim Commercial Bank and First Standard Bank Ltd.

The ceremony was attended by the Chief Executive of Shakarganj Mills, Ahsan Saleem, as well as by the Presidents of United Bank Ltd, Muslim Commercial Bank and Pak Oman Investment Company.

Corporate Division Heads of the lending consortium, namely United Bank, Muslim Commercial Bank, Faysal Bank, Askari Commercial Bank, Soneri Bank, First Women Bank and Pak Oman Investment Company were also present on the occasion.

SML is the flagship concern of Crescent group and the largest sugar mill in the country.

The principal activity of the company is to manufacture, purchase and sell sugar, distillate, and kanewood.

SML's manufacturing facilities are located in Jhang. The company is ISO 9002 certified and is the only sugar mill in Pakistan entitled to use international sugar mark on its product conferred by Sugarmark holding company UK and Sugarmark International France.

SML is the only sugar company in Pakistan that enjoys an Investment Grade credit rating of A minus.

Courtesy Business Recorder