HUBCO to Issue Sukuk of Rs. 6 Billion to Grow its Operations

The Hub Power Company Limited, through its wholly-owned subsidiary, Hub Power Holdings Limited, is in the process of finalizing issuance of an Islamic Shariah-compliant Sukuk of Rs. 6 billion for a period of 5 years.

These funds will be utilized to meet the ongoing capital requirements of the company.

This proposed Sukuk is being offered with Meezan bank limited as Shariah Advisor and Arif Habib Limited as its arranger, that will be available for subscription by financial institutions, investment companies and other eligible institutions.

HUBCO Expansion Plans

With an aggressive growth plan and focus on growing the shareholder value, Hubco is pursuing opportunities in the domain of thermal energy, alternate energy and water treatment, a press statement said.

The company has an installed capacity of producing over 2,920MW through its four plants in Hub, Narowal and Azad Kashmir. It is the only power producer in Pakistan with four projects listed in the CPEC, namely imported coal-based China Power Hub Generation Company (Private) Limited (CPHGC) at Hub, Thar Energy Limited (TEL) and Thalnova Power Thar (Pvt.) Ltd. and Sindh Engro Coal Mining Company (SECMC) at Thar Coal Block II. Both the 330MW power plants in Thar Block II have achieved their financial close and are expected to meet their Commercial Operations Date (COD) in 2021 and 2022.

Being a domestic source of energy, the power generation and mining projects in Thar Coal are expected to fortify the energy security of the country and would bring about substantial savings in foreign exchange for the country. The company is also investing in the Community Development Programs in the fields of health, education, livelihood and basic infrastructure in the vicinity of its plants.

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Karachi Kings & Northern to Change Captain from Next Season: Rashid Latif

Vivo to Launch $135 iQOO U1x on October 21st