ISLAMABAD: The National Power Parks Management Company (Pvt) Limited (NPPMCL) received an unprecedented response from a syndicate of local banks for project financing in excess of Rs100 billion on Monday.
The NPPMCL, which owns and operates two state-of-the-art power plants, is being privatised by the Privatisation Commission, which led the recapitalisation of Government of Pakistan’s equity and sovereign guaranteed debt, refinancing it with long-term project loan on a commercial basis.
The successful bank syndicate includes conventional and Islamic banks (HBL, Meezan, NBP, Faysal, Alfalah, Bank of Punjab, Bank Islami, Pak Kuwait Investment Company and UBL). The transaction has been structured and executed by Privatisation Commission, in conjunction with the Ministry of Finance and the NPPMCL, without the support of any financial advisor or intermediary saving a significant amount in advisory fees.
Federal Minister Mohammedmian Soomro welcomed the prospects and expressed his gratitude to banks for showing willingness to finance the project. We are heading on the way towards the completion of this landmark transaction within a stipulated time.
Moreover, expressing his gratitude to the banks upon conclusion of the bidding, Saleem Ahmad, chairman Privatisation Commission also stated that, “these indications from local banks not only underscore the depth and liquidity of capital markets in Pakistan but also reinforce the quality of the obligor risk and significance of the power sector.” He further acknowledged the key importance of efficient capital structure in providing affordable electricity to the consumer as well as enabling sale of the entity to blue-chip investors and operators.
The NPPMCL owns and operates 1,230MW Combined Cycle Power Plant Haveli Bahadur Shah in Jhang and 1,223MW Combined Cycle Power Plant Balloki in Kasur and as such is one of the biggest public sector power producers in the country, ensuring a brighter future for Pakistan.
Copyright Business Recorder, 2022