Bank of China and ICBC pledge debt financing for 660 MW Coal-Fired Power Plant in the Port Qasim Area

Lucky Electric Power Company Limited (LEPCL) is a project company (special purpose vehicle) that incorporated in Pakistan in 2014. It is responsible for the development, construction and operation of a 660 MW coal fired power plant in the Port Qasim area. The project site is spread over 250 acres in Deh Ghangiaro in Bin Qasim Town near the Port Qasim area, where similar coal-fired power projects are at different stages of approval or construction. The site area is sufficient for setting up two 660 MW super critical units. The power plant that is envisaged will consist of one coal-fired generating unit with a maximum gross capacity of approximately 660 MW, and a net capacity of about 607 MW. The total estimated project cost is $1 billion and it will be financed with a debt-to-equity ratio of 75:25. On July 4, 2014, ICBC and Bank of China both issued “letters of intent” that signaled their willingness to provide debt financing for this project. ICBC indicated that it would not be willing to provide more than $550 million. The equity contributions to this project are supposed to be provided by Lucky Cement Limited through its fully owned subsidiary LCL Holdings Limited. Pakistan’s Private Power Infrastructure Board (PPIB) issued a Letter of Support for this project on June 8, 2015. However, when reached financial close, there was no involvement of Chinese banks. The lenders for the project include Habib Bank Limited, United Bank Limited, National Bank of Pakistan, Bank Alfalah Limited, Askari Bank Limited, Soneri Bank Limited, Bank of Punjab, Meezan Bank Limited, Faysal Bank Limited and Dubai Islamic Bank Limited.

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