Karachi December 23 2022: Hub Power inform that the encashment notice of USD 150 million letter of credit has been withdrawn by China Power Hub Generation Company limited (CPHGC) and the Standby Letter of Credit has been extended on mutually agreed terms.
Hub Power share price gains PKR 4.25 or 7 percent after the announcement at Pakistan Stock Exchange.
Earlier, Hub Power inform that Hubco as a joint venture partner and Pakistani sponsor of China Power Hub Generation Company limited (CPHGC) provided security in the form of a Standby Letter of Credit of USD 150 million in favour of CPHGC expiring on November 23, 2022. An encashment notice has been served today by CPHGC, under the SBLC, on the issuing bank.
As the first and largest independent power producer in Pakistan, Hubco remains committed to providing the country affordable and uninterrupted energy and taking any and all necessary actions to protect the best interests of its shareholders.