ISLAMABAD – Pakistan’s government has allowed Fatima Fertilizer Company to undertake equity investment in Midwest Fertilizer Corporation in the United States, an official government announcement said.
Fatima Fertilizer would raise the debt for equity investment through floating an international bond for $300 million, said the announcement after a meeting of the Economic Coordination Committee, the country’s highest economic decision-making body, which gave the approval.
Headquartered in Indiana, Midwest Fertilizer plans to build and operate a nitrogenous fertilizer manufacturing facility in Posey Country. The $2.6 billion project will create 2,500 construction jobs over three years a workforce of about 200 permanent employees, according to the company’s website. The plant is scheduled to become operational in 2018.
The approval for Fatima Company came a day after U.S. Ambassador in Pakistan, Richard G. Olson met Finance Minister Ishaq Dar in Islamabad and exchanged views on various issues, including Fatima Fertilizer’s proposed investment venture in U.S.
Fatima Fertilizer will have a 35 percent shareholding in Midwest Fertilizer along with management control, according to a April 9 report by Pakistan’s English daily ‘The Express Tribune”, which also reported that the bonds to be issued by Fatima Fertilizer would be backed by Pakistan’s central bank.
The Fatima Fertilizer Company Limited was incorporated in Pakistan on December 24, 2003, as a joint venture between two major business groups in Pakistan namely, Fatima Group and Arif Habib Group. The company’s fertilizer production was recorded at 1.18 million metric tons in 2014, according to the company’s 2014 annual report. The company earned post-tax profit of 9,258 million rupees ($91 million approx.) in the year that ended on December 31.
The Company is listed at all stock exchanges of Pakistan. The current paid up capital of the Company is 2.1 billion rupees.