June 26, 20233 (MLN): Power Cement Limited (PSX: POWER) has reached an agreement with a local syndicate of banks to restructure its long-term obligations of Rs11.9 billion, in response to increasing inflation, high-interest rates, and weakened local demand, company’s filing on PSX showed.
The local syndicate of banks has approved Four principal repayments, occurring biannually between July 2023 and January 2025, which will be reduced from Rs1.19bn to Rs119 million each.
Two principal repayments, due in July 2025 and January 2026, will be reduced from Rs1.19bn to Rs298m each.
The remaining principal amount of Rs10.8bn will be paid in eight equal biannual installments of Rs1.35bn each, starting from July 2026 and ending in January 2030.
Previously, the Diminishing Musharakah was scheduled to be fully repaid by January 2028, but now it will be fully repaid by January 2030, following the revision.
Additionally, the profit margin of the Diminishing Musharakah will be reduced by 100 basis points for a three-year period, from July 2023 to July 2026.
“Despite the challenging macroeconomic factors, POWER remains dedicated to maximizing shareholder value and minimizing the adverse impacts of the current economic conditions.” The notice reads.
