Shareholders of Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer (IPP), have approved providing financial guarantees of up to $51 million to support two of its major Thar-based coal power ventures — Thar Energy Limited (TEL) and ThalNova Power Thar (Private) Limited (TN).
The development was disclosed in the company’s latest filing to the Pakistan Stock Exchange (PSX). The approval came during an extraordinary general meeting (EoGM) held on August 7, 2025, where shareholders passed resolutions authorising guarantees — in the form of standby letters of credit — of up to $31 million for TEL and up to $20 million for TN. These guarantees are intended to cover funding shortfalls through equity and/or subordinated debt.
HUBCO’s board and senior management have also been authorised to negotiate with banks and financial institutions, provide security where necessary, and finalise all agreements and documentation needed to issue and maintain the guarantees.
TEL is a 330 MW mine-mouth coal-fired plant located at Thar Block II, in which HUBCO holds a 60% stake. TN, also a 330 MW mine-mouth coal-fired facility at Thar Block II in Sindh, is 38.3% owned by HUBCO through its wholly owned subsidiary, Hub Power Holdings Limited (HPHL).
According to earlier disclosures to the PSX, HUBCO has already invested around $79 million in TEL and $52 million in TN. Both plants operate under the Government of Pakistan’s 2015 Power Policy, which offers a 20% return on equity in US dollar terms.
