National Power Parks Management Company (Pvt. Limited (NPPMCL) has received an unprecedented response from a syndicate of local banks for project financing worth over Rs. 100 billion.
NPPMCL, which owns and operates two state-of-the-art power plants, is being privatized by the Privatization Commission, which has led to the recapitalization of the Government of Pakistan’s equity and sovereign guaranteed debt, refinancing it with long-term project loan commercially.
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 the Privatisation Commission, in conjunction with the Ministry of Finance and NPPMCL, without the support of a financial advisor or intermediary to save a significant amount in advisory fees.
The Federal Minister for Privatization, Mohammed Mian Soomro, welcomed the prospects and thanked the banks for their willingness to finance the project.
“We are heading on the way towards the completion of this landmark transaction within a stipulated time,” he said.
Chairman Privatization Commission, Saleem Ahmad, appreciated the banks upon the conclusion of the bidding and commented, “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 also acknowledged the importance of efficient capital structure in providing affordable electricity to the consumer and enabling the sale of the entity to blue-chip investors and operators.
NPPMCL owns and operates the 1,230 MW Combined Cycle Power Plant Haveli Bahadur Shah in Jhang and the 1,223 MW Combined Cycle Power Plant Balloki in Kasur. It is also one of the biggest public sector power producers, which is ensuring a brighter future for Pakistan.
