London: Oracle Power has set up a £1mln short-term loan to provide working capital while negotiations continue over funding for the Thar thermal power station in Pakistan.
Major shareholder Brandon Hill is lending the money for a year on an unsecured basis. The coupon rate is 12%.
Shahrukh Khan, Oracle’s chief executive, said the terms of the loan were attractive; it provides non-dilutive capital and reaffirms the potential offered by the Thar project.
“With this facility in place, the company now has the flexibility to continue to progress its ongoing discussions with various parties with regards to the full funding of the 660MW Thar project.
“Following its elevation to the Priority List of the China-Pakistan Economic Corridor, the company has seen significant interest from potential financiers of both debt and equity. We look forward to updating the market on subsequent developments”, he said.
Oracle is establishing its role as a major solution provider for Pakistan’s critical shortage of electricity by bringing significant Chinese partners into the development of its mine and mine-mouth power plan.
