Meezan Bank, Pakistan’s largest Islamic bank, and Hyundai Nishat Motors, a joint venture of three leading international businesses – Nishat Group, Sojitz Corporation (Japan), and Millat Tractors – have recently signed an agreement for PKR 5.66 billion Islamic Finance Facility.
Meezan Bank is the sole Lead Arranger of this Islamic Finance Facility for Hyundai Nishat to finance its upcoming vehicle manufacturing project. The state-of-the-art manufacturing plant is being installed in an industrial estate in Faisalabad, spanning over an area of 70 acres, with an investment outlay estimated at over PKR 15 billion. The project is being set up under the auspices of the Automotive Development Policy (2016-21) announced by the Government of Pakistan.
The signing ceremony, held in Dubai, was attended by Mr. Irfan Siddiqui, President & CEO at Meezan Bank, and Mian Hassan Mansha, CEO at Hyundai Nishat. Moreover, Mian Muhammad Mansha, Chairman of Nishat Group, Mian Raza Mansha, Chairman of Hyundai Nishat, and Mr. Hiroto Murai, COO Automotive Division of Sojitz Corporation, were also present.
The ground breaking of the project was done in December last year and commercial operations are scheduled to begin by the end of 2019. Hyundai Nishat aims to introduce a range of globally acclaimed models of Hyundai in both passenger and light commercial categories through a nationwide network of 3S dealerships.
The new automotive policy (2016-21) has attracted many new automakers to Pakistan, sensing the market’s high growth potential. Leading international brands like Hyundai, KIA, and Renault along with other Chinese auto manufacturers, have responded very positively to the auto policy incentives and several projects are now at various stages of development.