Habib Bank Limited and National Bank of Pakistan has arranged a syndicate term loan facility of Rs 600 million for JDW Sugar Mills Ltd.
The proposed facility would have a 7 years pay back period.
The facility would be utilised for enhancing existing capacity from 8,000 TCD to 14,000 TCD. Consortium includes Habib Bank Limited, National Bank of Pakistan and Saudi Pak Commercial Bank.
JDW is located in District Rahim Yar Khan in the fertile sugar cane belt. The company has inherent competitive advantages over its competition. Management is aggressively pursuing a plan which envisages the development of an indigenous 12,000 acre sugar cane farm, research activity for development of better varieties, small loans to the growers, timely payments for raw material purchased and mechanised farming/harvesting.
The company posted a net profit of Rs 150 million for the FY 2003. Financial results for FY 2004 are expected to be even better due to increase in production and recovery.
Speaking at the signing ceremony CEO of JDW Sugar Mills Jahangir Khan Tareen reiterated his commitment towards development of new varieties, research and small loans for the farmers.
He highlighted the fact that JDW has produced 125,000 tonnes of sugar being the third highest producer in the country during the 2003-2004 crushing season at an average recovery of 10.55% which is the highest in the country. This in itself is an achievement for a sugar mill in Punjab.
On behalf of the syndicate Zakir Mahmood, President Habib Bank offered his continued support to the industry and especially to the units that foster innovation and new technology. He hoped that the company grows according to the vision and goals set by the management.
Present at the ceremony were Zakir Mahmood, Syed Ali Raza, Atif R Bokhari, Sima Kamil, Akbar Alam and other senior executives of the participating banks.-PR