Thal Limited renews investment support for ThalNova

August 07, 2025 (MLN): Thal Limited (PSX: THALL) has authorized continued investment support for ThalNova Power Thar (Private) Limited (TN), reaffirming its commitment to the project.

The members passed a resolution authorizing the company to provide guarantees, either in the form of standby letters of credit or otherwise, as security to financiers for an investment of up to $23.3 million (Rs equivalent), either as a subordinated loan or equity.

This support covers any funding shortfall or cost overrun before or after the Project Completion Date until the agreed release date under the Sponsor Support Agreement (SSA), the company's filing on PSX revealed today.

The company may also modify or issue a new standby letter of credit under the terms required by financiers, which will remain valid for up to 10 years from the date of the resolution or until the Term Loan Discharge Date for TN, whichever is later.

Further, the company reaffirmed the validity of the resolutions passed during the 2018 EOGM, authorizing standby letters of credit of up to $12.4m each for Debt Service Support (DSRA LC) and Commercial Risk Guarantee obligations.

These will continue in force for up to ten years or until the Term Loan Discharge Date, unless released earlier per the SSA.

The Chief Executive Officer, Chief Financial Officer, and Company Secretary of Thal Limited have been authorized, jointly or severally, to manage, negotiate, amend, and execute all documents and agreements related to the issuance or renewal of the standby letters of credit.

They are also empowered to take all necessary actions to fulfill these obligations.

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