The company is Pakistan''s largest producer of polyester fiber and sole producer of acrylic fiber. It started operations in 1992 and diversified into acrylic fiber manufacturing in 2000. DSFL is the flagship company of Dewan Mushtaq Group, with a strong customer base, competent management and a dedicated work force.

The project involves the company''s expansion into specialty fiber manufacturing, and the refinancing of existing long-term debt together with financing for long-term working capital requirements. The project''s development impact is expected to be significant as it will enhance the long-term sustainability of one of Pakistan''s largest private sector groups providing a key input to the textiles industry, which is the country''s most important industrial sector and major foreign exchange earner (about 60% of total exports). In addition to providing direct employment, the project will also support indirect employment by enhancing the viability of downstream textiles customers and local suppliers.

IFC''s role in this transaction is to assist the company in stretching the maturity of its long-term debt to match its future cashflows. The financing will improve the company''s financial structure, reduce the financial costs, support long-term working capital and boost the resources available to finance the expansion into the new specialty fiber project. IFC''s presence in this transaction will enhance the local confidence and signal international support for financing of the local corporate sector despite difficult regional conditions.