National Power Parks Management Company (Pvt.) Limited (“NPPMCL”) a state owned power producer received an unprecedented response from a syndicate of local banks for project financing in excess of Rs100 billion.
NPPMCL, which owns and operates two state-of-the-art power plants, is being privatized by Privatization Commission which led the recapitalization of Government of Pakistan’s equity and sovereign guaranteed debt, refinancing it with long-term project loan on a commercial basis. 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 Privatization Commission, in conjunction with the Ministry of Finance and NPPMCL, without the support of any financial advisor or intermediary saving a significant amount in advisory fees.
Expressing his gratitude to the banks upon conclusion of the bidding, Saleem Ahmad, Chairman Privatization Commission stated that, “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 further acknowledged the key importance of efficient capital structure in providing affordable electricity to the consumer as well as enabling sale of the entity to blue-chip investors and operators.
NPPMCL owns and operates 1,230MW Combined Cycle Power Plant Haveli Bahadur Shah in Jhang and 1223MW Combined Cycle Power Plant Balloki in Kasur and as such is one of the biggest public sector power producers in the country, ensuring a brighter future for Pakistan.
Wow! Probably the largest financing ever in Pakistan without a guarantee?
MASHA ALLAH. THINGS MOVING VERY FAST UNDER SALIM THE NEW CHAIRMAN. PROVES POINT OF VALUE OF COMPETENT PROFESSIONALS IN GOVERNMENT. HOW SINGAPORE BUILT ITSELF. ALLAH KAMYAAB KARAY.
What is the purpose of selling off profitable govt assets? Why not focus on PSM, PIA and so many other loss making govt entities? What will be left once all profitable entities will be sold off? Moreover ideally the proceeds from the sale of these entities should be used to HR development however these will be used to bridge revenue shortfall only.
Because government should not be in the business of owning any business. Your thoughts reflect that of the management that keeps a private chef and draws other benefits from public exchequer.
The intern at TCS paved his way through the company and took over the more important roles at Tata Group one at a time.
Useful post.Thanks for sharing.Keep it up.