PAKISTAN: Prime Commercial Bank arranges power loan

17 May 1996

The National Development Finance Corporation (NDFC) and Prime Commercial Bank (PCB) have arranged a Y7,428 million ($70.9 million) guarantee facility for a private power project being developed by Japan Power Generation.

PCB and NDFC both took major shares in the loan, with PCB taking $12 million and NDFC taking $10 million. The loan was also syndicated to Ailied Bank, Al-Faysal Investment Bank, Askari Commercial Bank, Crescent Investment Bank, Faysal Bank, Fidelity Investment Bank, Prudential Commercial Bank, Prudential Investment Bank and Schon Bank. The loan is to part cover suppliers' credits provided by Japan's Toyota Tsusho Corporation for a total of about $80 million.

Equity participation in the project is to be about $40 million. Islamic Investment Company of the Gulf has underwritten just over Rs 800 million ($23 million), which was raised in a foreign private placement of Rs 526.7 million ($15.2 million) and a local public offering of Rs 273.6 million ($7.9 million). Remaining equity is to be taken by the project sponsors and initial shareholders. The total cost of the project is between $117 million-120 million (MEED 6:10:95).

The power plant is to be built at Raiwind near Lahore and will have a capacity of 135 MW. Siemens (Pakistan) has signed the engineering, procurement and construction contract. Japan's Mitsubishi Heavy Industries is the equipment manufacturer and operation and maintenance contractor.

Commercial production is scheduled to start in September 1997.

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