Construction of water reservoirs: Meezan Bank-led consortium to give Rs25.5bn Islamic finance facility
KARACHI: Meezan Bank led consortium to provide Rs 25.5 billion Islamic Syndicated Project Finance Facility for the development of a 45 Cusec water supply project from Nabisar to Vajihar.
Meezan Bank led consortium and EnerTech Water Private Limited, have inked the facility agreements of Rs 25.5 billion Islamic Syndicated Project Finance facility, the largest financing facility raised for the Government of Sindh, structured under a public-private partnership.
According to Meezan Bank announcement, the facility will be utilized for the development of a 45 Cusec water supply project from Nabisar to Vajihar including two large water reservoirs and 65km pipeline in Thar, Sindh.
EnerTech Water Private Limited signed a Concession Agreement with the Government of Sindh under public-private partnership mode to build, construct and operate a water processing facility for supply of water to Thar, Sindh.
The financial sector of the country registered an overwhelming interest in the transaction resulting in the facility being oversubscribed by a substantial amount. The Mandated Lead Advisors & Arrangers for the facility are Habib Bank Limited, United Bank Limited, Meezan Bank Limited, Bank Alfalah Limited and Pak Kuwait Investment Company (Private) Limited.
The other participating financial institutions are National Bank of Pakistan, MCB Bank Limited, Faysal Bank Limited, The Bank of Punjab, Bank Islami Limited and Pak China Investment Company Limited.
The transaction is being led by Meezan Bank in the capacity of Investment Agent, Security Agent, Accounts Bank and Shariah Structuring Bank.
EnerTech Water Private Limited is a project company incorporated by EnerTech Holding Company, which is a wholly owned subsidiary of National Technology and Enterprise Company, which in turn is a fully owned subsidiary of Kuwait Investment Authority.
Ambassador of Pakistan to Kuwait Syed Sajjad Haider addressed the audience and congratulated the parties including the Government of Sindh and the lenders for successfully developing a transaction with a group company of Kuwait Investment Authority. He stated that, “This project will strengthen the relationship between Kuwait and Pakistan and further encourage investment from Kuwait.”
Abdullah Al Mutairi - Chief Executive Officer, EnerTech Holding Company, expressed his pleasure at reaching this important milestone. He stated, “Pakistan has some of the most outstanding professionals in the Banking as well as Public sectors. Pakistan can be a very attractive investment destination for sophisticated investors and EnerTech will continue to play its part to develop infrastructure in Pakistan.” He acknowledged the contribution of the Enertech team led by CEOYasser Malik for successful execution of this landmark project. He also praised the efforts of COO Usman Ahsan in structuring and execution of the transaction.
Ariful Islam Deputy CEO Meezan Bank congratulated the Government of Sindh for successfully closing this very important project and that this is an excellent example of a Public Private partnership.
He said Meezan Bank has always been keen to play an active role in the development of the country and is delighted to have had the opportunity of playing a lead role in arranging the debt financing for this project - this is largest financing facility raised for the Government of Sindh, structured under a public-private partnership that will contribute towards sustainable infrastructure development.
“As the country’s largest Islamic bank, we aim to continue working with entities like Enertech to bring strategic infrastructure projects to scale for the betterment of the region,” he added.
Copyright Business Recorder, 2021