Pakistan’s leading Islamic bank, Meezan Bank, and Burj Solar Energy Private Limited (BSEPL) have announced the financial close of the Rs. 1 billion syndicated Islamic finance facility for BSEPL’s portfolio of renewable distributed power generation in Pakistan.
The first tranche of Rs. 580 million will finance the construction of a 7 MW solar power plant for Power Cement Limited on the Karachi-Hyderabad Motorway.
Meezan Bank led the transaction as the Mandated Lead Arranger, and Pakistan Kuwait Investment Company (Private) Limited participated as the Co-Arranger. The transaction structure is based on the State Bank of Pakistan’s Islamic Financing Facility for Renewable Energy (IFRE) and a commercial facility.
The solar power plant will be rented to Power Cement Limited under a twenty-year equipment rental agreement and the solar energy generated will be used by the company’s cement plant in Nooriabad. It will generate 220 GWh solar units for twenty years and besides reducing the cost of electricity, will offset 112,000 tons of Carbon dioxide greenhouse gas (CO2 GHG) emissions.
The project is expected to start generation in July 2022. The legal counsel for the financiers was Mohsin Tayebaly & Co., while Kabraji & Talibuddin Advocates and Legal Counsels acted as BSEPL’s legal counsel. Orient Energy Systems (Private) Limited is the turnkey EPC contractor for the project.
Deputy CEO of Meezan Bank, Mr. Ariful Islam, while commenting on the occasion said, “Meezan Bank is committed to actively supporting and pursuing green energy initiatives. Meezan has played a key role in the financing of several renewable energy projects aggregating to 380 MW, as Lead or Co-lead manager and also participated in the debt syndications of two large hydroelectric projects being set up by the Government of Pakistan – Neelum Jhelum and Dasu.”
Burj Energy is an excellent initiative that will facilitate distributed affordable solar initiatives corporates, small and medium enterprises, and the individual consumers.’ He said the Meezan has also implemented green initiatives by installing solar at 59 branches and 140kW solar at its head office. Its new regional office building in Islamabad is also being Platinum Lead certified.
Chairman of BSEPL and Burj Energy International Management Limited UAE, Mr. Saad Zaman, said, “I am very pleased that we have successfully reached the financial close of the 7 MW solar farm for Power Cement Limited. This is one more success for our company and a significant moment for a development of hybrid renewable energy projects in Pakistan. This successful financial close reflects the ongoing interest and trust of leading financial institutions in the Pakistani renewables’ market and Burj Group.”
Chief Executive Officer Power Cement Limited, Mr. Kashif Habib, said, “Our future depends on green, sustainable, and renewable sources of energy. By installing this 7 MW solar farm, we are taking the first step toward our hybrid solar and wind energy project. We shall keep playing our part in making our production process more environment-friendly and positively impactful for the ecosystem we live in. It is high time we look towards other viable energy options that are clean and green.”
