Dubai Islamic Bank Pakistan (DIB Pakistan) has successfully completed a USD 101 million Shariah compliant financing facility for D.G. Khan Cement Company Limited, enabling the acquisition of a majority stake in Rafhan Maize Products Company Limited from US based Ingredion Incorporated.
Announced in Karachi on July 7, the transaction marks one of the largest recent Islamic acquisition financing deals in Pakistan. DIB structured the financing as a USD 101 million Commodity Murabaha Facility, allowing the Nishat Group to complete the strategic acquisition. The bank served as the Sole Mandated Lead Advisor, Shariah Advisor, Arranger and Financier for the landmark transaction.
The financing highlights DIB Group’s growing role in Pakistan’s investment banking sector. It also reflects the increasing use of Islamic finance structures for large corporate mergers and acquisitions. The transaction strengthens DIB’s position as a leading provider of complex Shariah compliant financing solutions for major Pakistani companies.
DIB Highlights Islamic Investment Banking Strength
DIB said the successful completion of the deal demonstrates the strength of its international Islamic banking platform, backed by deep local market expertise and institutional capabilities.
Speaking on the occasion, Muhammad Ali Gulfaraz, CEO DIB Pakistan, said, “This milestone represents another significant achievement for DIB’s Investment Banking team and further demonstrates our ability to deliver bespoke strategic financing solutions that support clients in executing transformational transactions while remaining fully compliant with the principles of Islamic finance.”
The transaction also reflects DIB’s continued focus on supporting large scale corporate financing in Pakistan through tailored Islamic banking products. Commodity Murabaha remains one of the most widely used Shariah compliant financing structures for corporate acquisitions because it provides businesses with access to funding while complying with Islamic finance principles.
DG Khan Cement is one of Pakistan’s largest cement manufacturers and forms part of the Nishat Group, one of the country’s leading business conglomerates with interests spanning cement, textiles, banking, insurance, power generation and agriculture. Earlier this year, DG Khan Cement confirmed its intention to acquire a controlling stake in Rafhan Maize Products as part of the group’s strategic diversification plans.
Advisors Played Key Role in Landmark Deal
DIB credited the successful execution of the transaction to close coordination between the bank, DG Khan Cement and buy side M&A advisor Dada Partners. Mohsin Tayebaly & Co. acted as Pakistani law legal counsel, while Hogan Lovells served as English law legal counsel.
The bank described the financing as another major achievement for its investment banking division. It added that the deal demonstrates DIB’s ability to deliver unique strategic solutions for corporate clients in Pakistan.
DIB also thanked DG Khan Cement’s management and acknowledged the trust placed in the bank by the Nishat Group throughout the transaction. According to the bank, that cooperation proved instrumental in managing the complexities of a transaction of this size. DIB concluded by wishing the Nishat Group success in making the acquisition a strategic milestone for its future growth.
