National Power Parks Management Company (Pvt.) Limited (“NPPMCL”) received an unprecedented response from a syndicate of local banks for project financing in excess of Rupees 100 billion.
NPPMCL, which owns and operates two state-of-the-art power plants, is being privatized by Privatisation Commission which led the recapitalization 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 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.”
