Fauji Cement Repays Rs3.37 Billion Bank Loan Early to Cut Interest Costs

Fauji Cement Company Limited (FCCL) has made an early repayment of Rs3.367 billion against a long-term bank loan, a step the company expects to lower its future debt servicing costs. The cement maker disclosed the repayment to the Pakistan Stock Exchange in a notice filed on November 10, 2026.

According to the disclosure, the payment was made against a long-term loan facility obtained through a syndicate of banks and priced at an interest rate linked to the Karachi Interbank Offered Rate (KIBOR). By retiring part of the debt ahead of schedule, the company aims to cut the interest expense tied to the facility.

The notice was submitted under Section 96 of the Securities Act, 2015, read with Regulation 5.6.1 of the Pakistan Stock Exchange regulations, which require listed companies to promptly disclose material information to the market.

Fauji Cement was incorporated in 1992 and ranks among Pakistan's largest cement manufacturers. It is a subsidiary of Fauji Foundation, which holds a 61.65 percent stake in the company. FCCL operates four cement manufacturing plants with a combined annual production capacity of 10.6 million tons, making it the country's third-largest cement producer.

The early repayment comes as listed companies in Pakistan continue to manage borrowing costs in a high-interest environment. Reducing debt ahead of maturity can ease pressure on cash flows and improve margins, though it also draws on liquidity that might otherwise be used for expansion or working capital.

FCCL's disclosure offers investors a clearer picture of its balance-sheet management as the cement sector navigates shifting construction demand and financing costs.