Karachi, October 10, 2026: Cordoba Logistics & Ventures Limited has announced key financial decisions approved by its Board of Directors, including the restructuring of a shareholder loan and an increase in the investment limit for its subsidiary, Cordoba Financial Services Limited.
According to a disclosure submitted to the Pakistan Stock Exchange on October 7, 2026, the board approved amendments to an existing loan agreement with shareholder Danish Elahi, along with an increase in the subsidiary’s investment limit from Rs 1 billion to Rs 2 billion.
Shareholder Loan Restructuring Approved
The board approved a further amendment to the loan agreement dated March 31, 2023, as previously amended through an addendum dated July 26, 2024. Under the revised arrangement, the repayment of the loan, including accrued mark-up, will be restructured with effect from June 30, 2026.
The company will repay the restructured amount to the sponsor either in cash or through conversion into equity, at its discretion. The board also resolved that no interest, mark-up, profit or other return will accrue or become payable on the restructured sponsor loan from June 30, 2026.
The company’s chief executive and company secretary have been authorised to complete the necessary formalities and execute the amendments to the loan agreement.
Investment Limit for Subsidiary Increased to Rs 2 Billion
In another key decision, the board approved an increase in the investment limit for Cordoba Financial Services Limited (CFSL), formerly known as Cordoba Leasing Limited, from Rs 1 billion to Rs 2 billion.
The revised limit also covers corporate guarantees provided on behalf of the subsidiary in connection with financing obtained or to be obtained from banks and financial institutions.
However, the company’s aggregate outstanding exposure under loans, advances and corporate guarantees must not exceed Rs 2 billion at any time. The decision remains subject to approval by the company’s members and compliance with applicable legal requirements.
Implications for the Company
The loan restructuring and increased investment limit represent important financial decisions for Cordoba Logistics & Ventures Limited. The revised loan terms remove future mark-up obligations on the restructured sponsor loan from the specified effective date, while the higher subsidiary investment limit provides greater scope for financing arrangements and corporate guarantees.
The actual financial and operational impact will depend on the implementation of the revised loan agreement, the structure of any repayment or equity conversion, and the subsidiary’s future financing requirements.
The company has disclosed these decisions in accordance with the Securities Act, 2015, and the Pakistan Stock Exchange’s applicable requirements.
Conclusion: Cordoba Logistics & Ventures Limited has approved a restructuring of its shareholder loan and proposed increasing its subsidiary’s investment limit to Rs 2 billion. These measures outline changes to the company’s financing arrangements, with the subsidiary investment decision subject to shareholder approval and applicable regulatory requirements.
