Karachi June 26 2023: In the wake of rising inflationary pressures, high interest rates and depressed local demand, Power Cement Limited has finalized an arrangement with a local syndicate of banks to re-profile its outstanding long term obligations of PKR 11.9 billion, according to company filing to the exchange.
The local syndicate of banks in respect of their long-term debt has favorably agreed to four biannual principal repayments due from July 2023 to January 2025 to be reduced from PKR 1.19 billion to PKR 119 million each.
Two biannual principal repayments falling due in July 2025 and January.2026 have been agreed to be reduced from PKR 1.19 billion to PKR 298 million each.
The remaining principal amount of PKR 10.8 billion has been agreed to be paid in eight equal biannual installments of PKR 1.35 billion each (from July 2026 to January 2030).
Previously, the Diminishing Musharakah was scheduled to be fully repaid in January 2028 while now, as a result of the above revision, the same is scheduled 10 be fully repaid in January 2030.
Additionally, the profit margin of this Diminishing Musharakah has also been reduced by 100 basis points, for a period of three years from July 2023 to July 2026.
Despite the challenges posed to the Company due to macroeconomic factors, the Company remains committed in maximizing our shareholders' value and effectively minimizing the impacts of adverse macroeconomic conditions.
Power Cement Limited was founded in 1981. The factory site of the Company is located at Motorway M-9, Nooriabad, Sindh. The Company was previously known as Al-Abbas Cement Limited until its acquisition in 2010 by the Arif Habib Group, a prominent financial and industrial conglomerate.
The Company’s principal activity is manufacturing, selling and marketing of cement with market presence in the Southern Region of Pakistan.
Presently, the Company has three manufacturing lines, with a cumulative nameplate clinker production capacity of 10,700 TPD with total annual capacity of 3.53 million tons. The Company has a total annual cement production capacity of 3.7 million tons, 11,235 TPD. It also has a modern state of the art latest European production line. We have export certifications from South African Bureau of Standards (SABS), Bureau of Indian Standards (BIS), Sri Lanka Standards Institute (SLSI), European Union (CE Marking) & Bureau of Philippines Standards.