November 8, 2018 (MLN): Engro Polymer & Chemicals Limited (EPCL) has entered into agreements to avail a long term Ijarah based financing facility of up to $35 million, with the International Finance Corporation (IFC).
In a recent announcement by EPCL to the Pakistan Stock Exchange (PSX), it has been informed that the decision has been taken to partially fund the company’s PVC expansion project, among other things.
PVC is a chemical used in making numerous plastic products construction materials like water and sewerage pipes, cables, and consumer items like shoes, packaging films, etc.
This financing was a part of the initial Rs.10.3bn expansion plan announced earlier, out of which Rs.5.4bn has already been raised from the issue of right shares.
While speaking at the occasion, Syed Abbas Raza – CFO Engro Polymer and Chemicals Limited said: “This financing of US$ 35 million would not only fund our expansion plan but would also bring precious foreign exchange to our country.
EPCL announced investing over Rs10 billion for expansion of the plants including those producing other related chemicals like VCM (raw material for PVC) and adding a new product to its portfolio namely caustic soda flakes.
While expanding the business, EPCL will add a new PVC plant with a capacity of 100,000 tons (taking total capacity to 295,000 ton per annum) and increase production of VCM (the raw material) by 50,000 tons through debottlenecking of the existing plant by the third quarter of 2020.
It is also intimated that in light of such arrangement, the anticipated financing requirements for the expansion project announced on December 28, 2017 have been met.
