One of Pakistan’s leading cement producers, Power Cement Ltd has completed the financing arrangements of Rs24.9 billion ($205 million) for the 2.5Mta expansion of its cement plant in the Nooriabad Industrial Area, Kalo Kohar District, Jamshoroo, Sindh.
On completion of this expansion, Power Cement will be the second-largest producer in the Southern Region by May 2019, with a total capacity of 3.4Mta, said Power Cement’s CFO, Tahir Iqbal.
The breakdown of financing includes equity of Rs1.3 billion by foreign investors such as The Investment Fund for Developing Countries (IFU), IFU Investment Partner K/S and FLSmidth. Equity of Rs7.4 billion has been retained by local shareholders for subscribing to right shares.
Other than equity, local investment includes Rs12.1 billion, financed by the National Bank of Pakistan (NBP), Habib Bank Ltd (HBL), Faisal Bank Limited (FBL), The Bank of Punjab (BoP), Al Baraka Pakistan Ltd, Bank Alfalah, Dubai Islamic Bank (DIB), Askari Bank, First Oman Investment Co, and the First Credit and Investment Pakistan Ltd.
Investment worth Rs4.1 billion is being financed by overseas organisations, including the Islamic Corporation for the Development of the Private Sector (Saudi Arabia), OFID, OPEC Fund for International Development (Austria) and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbh (Germany).
Equipment is being supplied by FLSmidth Europe while TEPC China is working as the construction contractor.
