Loads Limited Plans Rs. 903 Million Loan for Autoparts Subsidiary

Loads Limited, a Pakistani finance company, has proposed extending up to Rs. 903 million in financing to its autoparts subsidiary, Multiple Autoparts Industries (Private) Limited. The recommendations, made by the company's board on September 17, 2026, require shareholder approval.

The first proposed arrangement involves converting a Rs. 652.6 million trade receivable from Multiple Autoparts into a long-term loan. This loan, subject to shareholder approval, can be repaid over a maximum period of seven years, with an interest rate of three-month KIBOR plus an additional 3% per annum. The loan is unsecured, and payments can be made on demand or by the final maturity date.

In a separate proposal, Loads Limited is also offering a long-term loan facility of up to Rs. 250 million to Multiple Autoparts. This additional loan would be utilized to address the company's working capital needs and financial obligations. Like the first proposal, this loan will have a maximum term of seven years and carry an interest rate of three-month KIBOR plus 3% per annum, subject to the statutory minimum return.

The principal payments will similarly be payable on demand or by the final maturity date, and the facility will remain unsecured.

It is important to note that the actual disbursement of funds will only occur after the company receives shareholder approval. The implementation of any proposed investments will also not commence until the necessary approval is obtained.