NJHPC signs agree­ment with NBP, other fi­nan­cial in­sti­tu­tions

Pakistan Observer - - ECONOMY WATCH - TAFF

S RE­PORTER KARACHI—Neelum Jhelum Hy­dropower Com­pany (Pvt.) Lim­ited (NJHPC) has en­tered into a fi­nanc­ing agree­ment amount­ing to Rs100 bil­lion with a con­sor­tium of 16 banks led by Na­tional Bank of Pak­istan (NBP) for rais­ing Pak­istan’s largest shariah com­pli­ant in­fra­struc­ture cor­po­rate sukuks based on Di­min­ish­ing Musharaka which is struc­tured by NBP Aitemaad. The sign­ing cer­e­mony was held at a lo­cal ho­tel here on Wed­nes­day, said a state­ment. The cer­e­mony was at­tended by Pres­i­dent & CEO, NBP, Syed Iqbal Ashraf, Chair­man, WAPDA, Za­far Mah­mood, Member fi­nance, WAPDA, An­waar ul Haq and CEO NJHPCL Lt. Gen (R) Muham­mad Zubair along with Pres­i­dents and se­nior of­fi­cials of all the 16 par­tic­i­pat­ing fi­nan­cial in­sti­tu­tions.

NJHPC man­dated Na­tional Bank of Pak­istan to act as Man­dated Lead Ar­ranger (MLA) for ar­range­ment of up to Rs100 Bil­lion through is­suance of rated, se­cured and pri­vately placed Sukuks to par­tially fi­nance the con­struc­tion of strate­gi­cally im­por­tant 969 MW hy­del power project lo­cated in Dis­trict Muzaf­farabad, Azad Jammu & Kash­mir. Pres­i­dent, NBP, Syed Ashraf on the oc­ca­sion said the Sukuk is struc­tured with a tenor of 10 years and is backed by the sov­er­eign guar­an­tee from Gov­ern­ment of Pak­istan.

This Sukuk has re­ceived, a pre­lim­i­nary rat­ing of AAA from JCR-VIS and is ex­pected to have a wider im­pact on fi­nan­cial mar­ket of Pak­istan, help­ing aug­ment a fund­ing for­mat that has been pre­dom­i­nantly con­strained to smaller deals with shorter tenors. This Sukuk will also pro­vide av­enues for Is­lamic banks and Mu­tual Funds to invest their liq­uid funds in a trad­able GoP guar­an­teed Is­lamic in­stru­ment. Ashraf fur­ther added that the Neelum Jhelum Project is a hy­dropower gen­er­a­tion fa­cil­ity that en­vis­ages the di­ver­sion of Neelum River wa­ter through tun­nels which falls into Jhelum River af­ter pro­duc­ing power. It is the largest hy­dropower project un­der­taken in the coun­try since the completion of Mangla and Tar­bela Dam projects. On completion, it is de­signed to gen­er­ate 5.15 bil­lion units of elec­tric­ity an­nu­ally, green en­ergy fetch­ing to­tal rev­enue of up to Rs. 50 bil­lion to WAPDA an­nu­ally as per ex­ist­ing com­pa­ra­ble tar­iff: Sched­uled completion of the Project is end of July 2017.

Ad­dress­ing the cer­e­mony, Chair­man, WAPDA, Za­far Mehmood said this is the big­gest ever quan­tum of funds that has been ar­ranged from the lo­cal banks for any pub­lic sec­tor project in the his­tory of coun­try.

ISLAMABAD: Shafique Ahmed Uqaili, Chief HRG ABL and Dr. Ahmed Yousif Ahmed Al Drai­weesh, Pres­i­dent IIUI sign­ing an MoU to pro­mote Is­lamic bank­ing.

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