July 29, 2020 (MLN): Packages Limited, in a notification to PSX, has clarified that the five-year loan agreement of USD 25 million which it signed with International Finance Corporation on June 12, 2020, is a loan facility arranged in the normal course of business and is neither in the form of equity investment not carries any conversion rights.
‘IFC Loan Agreement is one of the financing options arranged by the Company for any future funding needs. As and when there is a need for funds, the Board of Directors of the Company will evaluate the available financing options including IFC Loan Agreement in the best interest of the Company and its shareholders and make drawdowns accordingly’, the notification added.
For the unversed, IFC, a member of the World Bank Group, had signed a deal for a five-year loan investment with Packages, one of Pakistan’s leading packaging and tissue paper producers, to modernize its operations, and cut its water and energy use.
IFC has been advising Packages on ways to cut its water and energy use, in a country ranked as among the world’s most energy-intensive and facing water shortages.
By adopting resource efficiency measures, Packages will be able to annually decrease greenhouse gas (GHG) emissions by about 11,000 tons of carbon dioxide equivalent and save about 43,000 megawatt-hours (MWh) and about 214,000 cubic meters (m3) of water per annum. Overall, the company will save annually about $1.4 million in its operation.
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