Karachi April 16 2023: China Power Hub Generation Company (Pvt.) Limited successfully issues Rated, Privately Placed, Unsecured Short Term Sukuk of PKR 7,000 Million to finance working capital requirements despite earning strong profitability of PKR 46.5 billion in 2022.
The Bank of Punjab and Pakistan Kuwait Investment Company (Private) Limited acted as ‘Mandated Lead Advisors and Arrangers’ for the transaction. The Bank of Punjab also acted as Investment Agent.
The purpose of the PPSTS-3 is to finance the company's working capital requirements. The tenor of PPSTS is up to 6 months and will carry a profit rate of 6MK+(upto 80bps). The profit and principal will be paid at maturity. The PPSTS is unsecured.
The Company has announced the Project Completion Date (PCD) on 23rd Feb 2023. CPHGC has also finalized the tariff with NEPRA recently. The Company reported a turnover of PKR 190.6 billion during the CY22 (CY21: 100 billion) and has attained a bottom line of PKR 46.5 billion in CY22 (CY21: 19 billion).
The company has paid off six installments of the long-term project-related debt. In reference to short-term borrowings, CPHGC has procured working capital lines of PKR 66.7 billion out of which short-term borrowing utilization stood at PKR 44.4 billion during CY22.
State Power Investment Company (52.5%) in collaboration with the Hub Power Company (47.5%) has setup a 1320MW coal-fired power plant in 2015 at Hub, Baluchistan. It's construction was completed in 2018 and the plant commenced its operations in 2019. Power Purchase Agreement (PPA) is signed for thirty years. Established and registered in Hong Kong in 1994, State Power International Holding Ltd. is primarily focused on the development, construction, operation, overseas investment, and financing of power supply programmes. Whereas, HUBCO is one of the first and largest Independent Power Producers (IPP) in Pakistan to be financed by the private sector in Southern Asia. The BoD comprises of seven members, four members represent China Power International (Pakistan) Investment Limited, while three represents Hub Power Holdings Limited. The management team is led by Mr. Ren Lihui, appointed as CEO. He is accompanied by a team of qualified and experienced Chinese and Pakistani individuals.