Byco Oil Pakistan Limited (“BOPL”) has successfully issued its first privately placed Sukuk for Rs 3,120 million, reported a national daily.The issue, subscribed by a wide range of local investors, is rated AAA by Pakistan Credit Rating Agency (PACRA) and is 100 percent backed by a guarantee from the Private Infrastructure Development Group’s guarantee company GuarantCo.
In a statement, Lasitha Perera, Chief Executive Officer of GuarantCo said, “The success of Byco Sukuk, the first of its kind, delivers on GuarantCo’s commitment to provide local currency credit enhancement that enables investors to participate in long-term infrastructure projects in Pakistan.”
The Sukuk supports a program focused on energy efficiency, expansion of storage facilities leading to increased output and profitability at Byco’s flagship refinery in Balochistan, south West Pakistan. The refinery is one of the largest in the country and will support country’s trade deficit. The increased output from the facility will provide additional fuel for energy and transportation to support the country’s economic growth.
BOPL is engaged in oil refining business, being the largest refinery in Pakistan having a capacity of 120,000 bpd. The Group owns an offshore Single Point Mooring (SPM). The SPM with an annual capacity of 12 million tons is the first floating port of the country set up in the Arabian Sea at a distance of approximately 15 km from Byco’s installations and it has handled multiple products. The company is in the process of merging its subsidiaries, comprising refining, oil marketing and terminal operations, which would lead to larger asset base, decrease in administrative cost and generate synergies.
Amir Abbassciy, CEO of Byco Group said “We opted for long-term Islamic financing and are pleased with the overwhelming response from the market, especially from non-institutional investors. The funds raised will allow us to undertake necessary investments improving performance and efficiency of our refining operations.”
GuarantCo is part of the Private Infrastructure Development Group (PIDG), and provides local currency solutions to local or regional financial institutions and bond investors, to help infrastructure projects raise debt finance. Primarily, this is through guarantees denominated in local currency.GuarantCo is one-of-a-kind, the only local currency guarantee facility in the world targeting infrastructure in frontier markets. GuarantCo is funded by Australia (DFAT), the Netherlands (DGIS through FMO), Switzerland (SECO), Sweden (Sida), and the UK (DFID).
