Lucky Electric reports financial close

Lucky Electric Power Company has today informed the exchange that it has achieved financial close on June 25th, 2018 after fulfilling all the necessary conditions required to be met as per the financing requirements.

The company achieved the close for setting up a 660 Mega Watt electric power plant for commercial production in Thar.

The total cost of the project is estimated to be at $1.081 billion. Lucky Cement would be the sponsor of the project. The lenders for the 75 percent of the debt 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.

Coal for generation of electricity will be provided to the company Sindh Engro Coal Mining Company (SECMC) whereas the electricity generated will be sold to Central Power Purchasing Agency (guarantee) limited (CPPAGL) under the 30 year power purchase agreement.

The company is currently in the works to setup a “660MW super critical coal based power project for supplying electricity to national grid.”

As per the notice, “project cost is estimated to be USD 885 million which shall be financed through a debt to equity ratio of 75:25.”

The project will begin commercial production by March, 2021. The project was unable to achieve financial close due to bureaucratic delays in the machinery.