Recently, a meeting has been conducted by the board of directors of a well known firm Fauji Foods Limited and approved that the firm be and is hereby authorized to take loan of amount PKR 2,350,000,000 from Fauji Foundation.
To this end, management has been authorized by the Board in order to enter into the Shareholder Loan Agreement with Fauji Foundation for the said Loan.
Said loan would be an unsecured subordinated shareholder loan to be given by Fauji Foundation to the firm in order to meet the working capital requirements and shall be disbursed in one or more proportion as may be agreed with Fauji Foundation.
However, the tenor would be end on the second anniversary of the date of disbursement of the each proportion. It would carry mark-up @ rate of 6 Month KIBOR + 2% which would be payable on demand.
In additional, Fauji Foundation have the choice to convert the loan into an equity at any time as per written notice at par or lower value because it set out in the Shareholder Loan Agreement and concerned to necessary approvals.
