Pioneer Cement Limited’s board of directors has approved a proposal to extend loans and advances of up to Rs. 4 billion to its holding company, Maple Leaf Cement Factory Limited (MLCFL), in a related-party transaction that now awaits shareholder endorsement.

The financing facility, disclosed in a notice to the Pakistan Stock Exchange on Monday, will be available for a one-year window running from September 18, 2026, through September 17, 2027. The loan will carry a floating markup set at one percent above the three-month KIBOR or one percent above Pioneer Cement’s own average borrowing cost, whichever is higher, ensuring the subsidiary is compensated at a premium to its cost of funds.

The proposal is structured under Section 199 of the Companies Act, 2017, which governs related-party transactions. Shareholders will cast their votes at the company’s Annual General Meeting scheduled for September 15, 2026, in Lahore. The share transfer books will remain closed from September 9 to September 15.

The inter-company financing comes less than a year after Maple Leaf Cement completed its landmark acquisition of Pioneer Cement, securing an 88.28 percent controlling stake in a deal valued at roughly Rs. 75.8 billion. The transaction reshaped Pakistan’s cement landscape, creating the country’s third-largest producer by capacity.

Alongside the loan announcement, Pioneer Cement’s board declared no cash dividend or bonus shares for the fiscal year, opting instead to retain earnings.

The company reported a robust set of annual results for the year ended June 30, 2026. Net revenue climbed 16 percent to Rs. 38.58 billion, up from Rs. 33.31 billion a year earlier. Gross profit rose to Rs. 11.58 billion from Rs. 10.44 billion, while operating profit reached Rs. 10.34 billion compared to Rs. 9.20 billion in the prior year.

Profit after tax surged 35 percent to Rs. 6.59 billion, translating to earnings per share of Rs. 29.03 — a marked improvement from Rs. 21.47 in the preceding year. The company generated Rs. 9.67 billion in net cash from operating activities and reduced its long-term financing obligations over the course of the year. Total assets stood at Rs. 79.44 billion as of June 30, 2026.