National Refinery Limited (NRL) has successfully raised Rs 10 billion through its first-ever Sukuk issuance. The company informed the Pakistan Stock Exchange about this milestone on Thursday.
The six-month unsecured Sukuk is privately placed and carries an A1 rating from the Pakistan Credit Rating Agency (PACRA). It is priced at three-month KIBOR minus 10 basis points per annum. This is NRL’s first capital-market debt instrument.
The company said the funds will serve as an alternative source of working capital. By using this Shariah-compliant financing, NRL is diversifying its funding options beyond traditional bank loans.
NRL was founded in 1963 and is one of Pakistan’s oldest oil refineries. It operates a complex with two lube refineries and one fuel refinery in Karachi. The company produces a wide range of petroleum products, including fuels, lubricants, asphalt and petrochemicals. It is part of the Attock Group.
United Bank Limited and Faysal Bank acted as joint mandated lead advisors and arrangers for the deal. The entire amount was placed in the non-bank market at competitive rates.
This successful Sukuk shows growing confidence in Pakistan’s capital markets and the increasing use of Islamic finance tools by major industrial companies. It also opens the door for other players in the refinery sector to explore similar funding options.
NRL’s move highlights a practical way for energy companies to manage short-term cash needs while following Shariah principles.