BOP to raise Rs 13 billion debt financing for Lucky Electric
LAHORE: After successfully raising debt financing of Rs 7.9 billion for Lucky Electric Power Company Limited (LEPCL) in two tranches, Bank of Punjab (BOP) has been awarded a third term of financing by the company to raise additional working capital of Rs 5 billion.
To mark these successful transactions and the awarding of a new mandate, a ceremony was recently held at Lucky Cement’s head office, attended by Mohammad Ali Tabba (CEO – Lucky Cement Limited), Ghazanfar Jillani (Director, BOP) and Zafar Masud (Chairman & CEO, BOP) as well as other senior officials from both institutions.
LEPCL is developing a 660 MW coal-fired power plant at a project cost of $850 million. The project will run on Thar coal after the expansion of the coal mine and will help reduce the cost of Thar coal through economies of scale. Being one of the most efficient coal power projects in Pakistan, the project will also help reduce the cost of electricity in Pakistan.
The awarding of the third debt arrangement mandate in a period of just two months demonstrates Lucky Group’s confidence in the investment banking capabilities of the Bank of Punjab under its new leadership.
Mohammad Ali Tabba appreciated the role of BOP, which is rapidly emerging as one of the most active commercial banks in the market with a seasoned investment banking team, in arranging financing for LEPCL. Zafar Masud has expressed his strong desire to further deepen BOP’s relationship with Lucky Group, which is cementing its place as one of the largest industrial conglomerates in the country.
Copyright Business Recorder, 2022