ABS & Co has successfully advised on the structuring and implementation of a PKR 400 million Shariah-compliant Musharaka financing facility for the purchase of an asset by a leading textile manufacturer, with Meezan Bank acting as the financier.
The firm’s role focused on the development of the Musharaka structure, including the formulation of contribution mechanics, profit-and-loss sharing arrangements, and asset identification protocols. ABS & Co also advised on governance rights between the managing co-owner and the Musharaka participant, ensuring a robust legal framework for risk allocation, default triggers, and exit mechanics that met both Shariah requirements and conventional banking expectations.
Throughout the transaction lifecycle, ABS & Co supported the client by advising on transaction sequencing and finalizing the complete suite of Musharaka and ancillary documentation. The firm further ensured that the structure remained aligned with the relevant regulatory, tax, and Shariah compliance considerations. The successful completion of this PKR 400 million financing reflects ABS & Co’s strength in providing bespoke Shariah-compliant financing solutions for corporate clients.
This matter was led by Partner Bakhtawar Bilal Soofi.
