Corporate Corner Minister meets bank heads
Federal Privatisation Minister Mohammad Mian Soomro and Special Assistant to Prime Minister on Petroleum Nadeem Babar met heads of international and local banks to discuss debt arrangement for two RLNG power plants of National Power Parks Management Company Limited (NPPMCL). Banks were asked to participate as lenders to successfully complete the transaction. Twelve IPPs have been shortlisted for bidding. As part of the privatisation process, the potential bidders will be required to re-finance government of Pakistan or PDFL (Pakistan Development Funding Limited) funding and NPPMCL’s existing commercial debt through foreign and local debt financing. Furthermore, to successfully complete the transaction, it is critical to ensure that the potential bidders are able to secure sufficient financing. Therefore, the participation of local banks is considered important to provide additional confidence to the potential bidders for closing the transaction. The minister said considering the importance of the privatisation of these power plants for the government, the Privatisation Commission would appreciate the cooperation of commercial banks/lenders to facilitate a successful transaction within the envisaged timeline.
Published in The Express Tribune, July 25th, 2020.
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