Islamabad, 14 Apr, 2025: Ghani Chemical Industries Limited (PSX: GCIL) has received formal approval from its shareholders to commit a significant sum of up to Rs. 1.5 billion for the development and financial strengthening of its subsidiary.
Ghani ChemWorld Limited (GCWL). This move is expected to support the growth trajectory of GCWL while further expanding the reach and operations of the Ghani Group.
Key Details of the Investment and Financial Terms
In an official notification filed with the Pakistan Stock Exchange (PSX), it was revealed that the investment will primarily take the form of advances and loans provided to Ghani ChemWorld Limited.
The structure of this financial support is designed to be flexible, allowing funds to be disbursed as required by GCWL’s operational and developmental needs.
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To ensure profitability, the financial transactions will carry a minimum return rate of 3-month KIBOR (Karachi Interbank Offered Rate) plus a 110 basis points margin.
This interest rate structure provides a stable and favorable return for Ghani Chemical Industries over the course of the investment.
Repayment Terms and Duration of the Investment
The terms surrounding the repayment of this substantial loan and advance agreement stipulate that all amounts must be settled within three years from the date of disbursement.
This timeline allows for sufficient flexibility in the repayment structure while ensuring that GCWL remains financially accountable for the loan.
Furthermore, the approval resolution concerning this investment will remain active for a period of five years, starting from the date of shareholder approval.
This duration aligns with GCIL’s long-term vision for supporting the continued growth and profitability of its subsidiary.
Authorized Decision-Makers for the Investment
As part of this investment resolution, the Chief Executive Officer (CEO) and/or the Company Secretary of Ghani Chemical Industries have been granted specific authorization to make the necessary decisions concerning the investment.
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These individuals will have the discretion to act on behalf of the company, ensuring that the financial arrangements and terms are adhered to as planned.
Strategic Move to Foster Growth and Strengthen Partnerships
The approval of this substantial financial commitment is a clear demonstration of Ghani Chemical Industries’ dedication to expanding its subsidiary’s operations and supporting its growth in a competitive market.
The investment in Ghani ChemWorld Limited (GCWL) is a strategic step toward enhancing the company’s overall market presence while fostering long-term growth and collaboration across its various business segments.
