Mughal Steel raises Rs. 2B via Sukuk for working capital
What's the deal? Mughal Iron & Steel Industries Limited has raised Rs. 2 billion (about $7.2 million) through its Sukuk VIII, a privately placed, secured debt instrument offered to Qualified Institutional Buyers. The Lahore-based, Pakistan Stock ExchangeDealroom has a profile for this one. Try Dealroom →-listed steel manufacturer disclosed the transaction in a notice to the exchange.
The details: The three-year, A-rated, OTC-listed Sukuk was issued to meet the company's working capital requirements. The transaction was completed on August 5, 2026, which also served as the issue date.
What's the endgame? The total issue size is up to Rs. 2.5 billion, including a Green Shoe Option of Rs. 500 million. Mughal said that option remains open and that it will notify the market separately if the additional amount is placed.
The signal: The quick re-raise — Mughal's eighth Sukuk — points to steady reliance on Islamic debt markets to fund a capital-intensive business, rather than dilutive equity.
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Read more: ProPakistani
