White Lion Foods Utilises Innovative Sukuk Instrument for SME Financing

White Lion Foods ("WLF"), an international agribusiness, has become the first medium-sized company to issue a profit-participating sukuk using a Luxembourg securitisation vehicle. The Singapore-based company, one of the world's leading Brazil nut exporters, has launched its inaugural Profit Participating Note ("PPN"), closing the first tranche of USD 2 million from a USD 10 million issuance programme. The funds, raised on a rolling monthly basis, will be deployed over three years as working capital for purchasing raw materials, processing, shipping, and selling the final product, with proceeds shared directly with note holders.

Distinct from conventional sukuk structures, the PPN combines a revenue-financing or profit-financing model, commonly used in North America, with classical...