Dubai Islamic Bank Backs DG Khan Cement Acquisition Financing

Dubai Islamic Bank has arranged $101 million in Sharia-compliant financing, enabling DG Khan Cement’s major acquisition and highlighting Islamic finance’s growing role.

Dubai Islamic Bank Group has arranged a $101 million Sharia-compliant financing facility to support DG Khan Cement Company Limited’s acquisition of a majority stake in Rafhan Maize Products Company Limited from US-based Ingredion Inc. The financing enabled Nishat Group, the parent company of DG Khan Cement, to complete one of Pakistan’s larger corporate acquisition transactions of the year, according to The News.

The financing was structured as a commodity Murabaha facility, an Islamic financing mechanism commonly used to comply with Sharia principles while facilitating commercial transactions. Dubai Islamic Bank served as the sole mandated lead adviser, Sharia adviser, arranger and financier, underscoring its central role in executing the complex acquisition.

According to The News, the transaction reflects the increasing adoption of Islamic finance solutions in Pakistan’s mergers and acquisitions market. A statement cited by the publication described the financing as “one of the larger acquisition financings in Pakistan’s corporate sector this year,” highlighting the growing confidence in Sharia-compliant structures for large-scale corporate deals.

The acquisition also brought together several advisers with expertise across financial and legal disciplines. Dada Partners acted as the buy-side mergers and acquisitions adviser for the purchaser, while Mohsin Tayebaly & Co provided Pakistani legal counsel. International law firm Hogan Lovells advised on the English law aspects of the transaction, supporting the cross-border elements of the deal.

The financing arrangement marks another significant milestone for Islamic banking in Pakistan’s corporate landscape, where demand for Sharia-compliant financial products continues to expand. As companies pursue larger strategic acquisitions, institutions offering specialised Islamic financing solutions are expected to play an increasingly important role in facilitating transactions while meeting regulatory and religious requirements.

Industry observers note that the successful completion of the financing demonstrates how Islamic banking instruments can support sophisticated corporate acquisitions without departing from Sharia principles. The deal also signals continued investor confidence in Pakistan’s corporate sector and highlights the growing integration of Islamic finance into mainstream business activity as companies seek flexible funding solutions for expansion and strategic investments.