Matco Foods secured $2.62 million to expand corn starch production in Pakistan

South Asia’s agribusiness company Matco Foods has secured a three-year financing deal worth PKR 750 million ($2.62 million) with Bank Alfalah. This agreement, finalized last week, will enhance Matco Foods’ corn starch production capabilities in response to the growing needs of a varied customer base.

The funding will be utilized to expand the company’s corn starch facility located in the Allama Iqbal Industrial City, Special Economic Zone (SEZ), in Faisalabad, Punjab. This facility, which has been operational since August 2022, plays a crucial role in providing high-quality corn starch to markets both in Pakistan and abroad. The investment will increase the production capacity from 200 tons per day to 300 tons per day. Additionally, a portion of the funds will be allocated toward the repayment of short-term loans. An aspect of the agreement with Bank Alfalah includes the option to convert the financing into ordinary shares of a new subsidiary of Matco, pending regulatory approval.

Khalid Ghori, CEO of Matco Foods, highlighted the importance of this partnership: “At Matco Foods, we are committed to investing in the growth of our corn starch segment to better serve our diversified customer base. We extend our sincere gratitude to Bank Alfalah for its strategic support, which is vital for the continued expansion of Matco Foods. We are optimistic about Pakistan’s economic future and are dedicated to contributing positively to its development.”

Farooq Ahmed Khan, Group Head of Corporate, Investment Banking, and International Business at Bank Alfalah, also commented on the collaboration: “We are excited to partner with Matco Foods in their growth journey, providing customized financial solutions that align with their expansion plans. This collaboration underscores Bank Alfalah’s commitment to driving strategic investments in Pakistan’s agribusiness sector, enhancing the agricultural value chain, and promoting sustainable economic progress. As a bank that supports value-added agriculture, we are dedicated to enabling companies like Matco Foods to scale, innovate, and contribute to long-term industry growth.”