The Hub Power Company Limited (HUBCO) has called an Extraordinary General Meeting (EOGM) for August 7, 2025, seeking shareholder approval on two major investment commitments worth $51 million for its associated coal-based power projects in Thar.
The first resolution seeks to extend and amend an existing sponsor guarantee of up to $31 million for Thar Energy Limited (TEL), a 330 MW mine-mouth coal power plant in which HUBCO holds a 60 percent stake. The second item on the agenda is a new proposal to issue a separate SSC LC of up to $20 million in support of ThalNova Power Thar (Private) Limited (TN), another 330 MW coal-fired plant.
The $31 million guarantee was originally approved by shareholders in 2018 and revised in 2019. It was issued through a standby letter of credit (SSC LC) to cover cost overruns, debt shortfalls, or other project-related liabilities. HUBCO now proposes to extend the validity of this SSC LC until January 2034 or the maturity of the TEL project loan, whichever is later.
The other $20 million facility would be used to cover any future funding gaps or liabilities under project agreements and would similarly remain valid until July 2034 or loan maturity.
HUBCO, through its wholly owned subsidiary Hub Power Holdings Limited (HPHL), has already invested approximately $52 million in ThalNova. No impairments or write-offs have been recorded against this investment to date.
Both projects fall under the 2015 Power Policy and are expected to deliver around 20 percent equity returns in USD, according to HUBCO’s filings.
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