HUBCO to provide sponsor support of $8 million for ThalNova Power Thar

March 31, 2020 (MLN): Hub Power Company Limited (HUBCO) has approved sponsor support of up to USD 8 million for 330MW mine-mouth Coal Power Plant (ThalNova Power Thar Limited) as a special resolution passed during the Extra Ordinary General Meeting of the Company held on Tuesday, March 31, 2020, via video conference.

The Company is authorized to provide additional sponsor support for the benefit of ThalNova Power Thar (Pvt.) Limited and Intercreditor Agent to guarantee an investment in the form of equity or subordinated debt to cover for funding shortfall that may arise due to the unavailability of coal and/or delay in the commercial operations date, informed by HUBCO to PSX via notification.

It is notified that such ‘investment’ shall be valid till September 2022 or such other date as may be required under the Sponsor Support Agreement, whichever is later.

 The following special resolutions were passed during the meeting which are given below:

• The company to provide Additional Sponsor Support of amount up to USD 12 million for 330MW mine-mouth Coal Power Plant (Thar Energy Limited) and Intercreditor Agent to guarantee an investment in the form of equity or subordinated debt to cover for funding shortfall that may arise due to unavailability of coal and/or delay in the commercial operations date. Such ‘investment’ shall be valid till June 2022 or such other date as may be required under the Sponsor Support Agreement, whichever is later.

• The company to issue Initial Debt Service Reserve Account (“DSRA”) and DSRA LC (“DSRA Letter of Credit”).

• The CEO, CFO and the Company Secretary, acting jointly or severally are authorized to enter into any amendment to the Sponsor Support Agreement.

• The CEO, CFO and the Company Secretary, acting jointly or severally are authorized to negotiate and provide security to arrange additional sponsor support from financial institutions or banks on such terms and conditions which may be deemed appropriate.

Copyright Mettis Link News