Latest news with #HUBCO
Arab News
16-07-2025
- Business
- Arab News
Pakistan's HUBCO seeks extension of $51 million guarantees to safeguard coal plants
KARACHI, July 16 : Pakistan's largest independent power producer Hub Power (HUBCO) said on Wednesday it was seeking an extension to $51 million in bank guarantees to protect its coal-fired power plants, a crucial source of stable power amid Pakistan's rising use of solar. The guarantees, previously short-term, would now stay in place until 2034 to cover future loan repayments and potential penalties, the company said in a notice to the country's stock exchange. New government-imposed transmission charges, which HUBCO is contesting and says were not included in its original contracts, have pushed investors to seek extended guarantees. The cost of borrowing to provide these guarantees would remain below the expected returns from the projects, it said. 'The extended guarantee will cover any fines or funding gaps that may arise,' HUBCO said in a notice to the country's stock exchange, adding that the company has invested about $131 million in the projects so far. The South Asian nation has faced chronic electricity shortages and challenges to grid stability because of rising solar power use, fuel import constraints due to a foreign exchange crisis and a debt-burdened electricity sector. Stable coal-fired power supply is crucial amid rising use of solar power, whose variability could potentially cause blackouts if mismanaged. HUBCO will hold an extraordinary general meeting in August to seek shareholder approval for the plan for its two 330 megawatt (MW) plants operating on locally mined coal 'to ensure the plants' continued operation,' it said. The plants' problems stem from broader challenges faced by Pakistan's power sector. Pakistan last year authorized an early termination of a power supply deal running to March 2027 as a part of an IMF mandate to cut energy debt.
Business Recorder
16-07-2025
- Business
- Business Recorder
HUBCO proposes $51mn investment in Thar-based coal projects
Hub Power Company Limited (HUBCO), Pakistan's largest Independent Power Producer (IPP), has announced plans to extend its financial support to two of its key Thar-based coal projects i.e. Thar Energy Limited (TEL) and ThalNova Power Thar (Private) Limited (TN), with a combined proposed investment of up to $51 million (approx Rs14.61 billion). The IPP disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday, ahead of an Extraordinary General Meeting (EGM) scheduled for August 7, 2025. HUBCO shared that its board has approved special resolutions to extend the Sponsor Support Contribution Letters of Credit (SSC LCs) for both projects. The company seeks these extensions to address funding requirements and potential debt servicing shortfalls as the projects approach critical operational milestones. Pakistan's largest IPP HUBCO posts Rs20.3bn profit in 1QFY25 despite revenue dip 'The purpose of the extended tenor of the SSC LC would be to cover: (i) any LDs determined to be payable by TN under its amended PPA on account of payment of High Voltage Direct Current (HVDC) charges under certain conditions. Such charges levied by CPPA-G have been disputed by TN, however, following conclusion or resolution of this dispute, any payable amount would remain a sponsor liability (in proportion to its share under the SSA); and (ii) shortfall in debt servicing, pursuant to the conditions stipulated in the SSA (in proportion to its share under the SSA). In such case, the Sponsors would be required to inject such funds, either in the form of equity and / or subordinated debt,' read the notice. As per the notice, HUBCO seeks shareholder approval to provide or extend a guarantee of up to $31 million in favour of Thar Energy Limited (TEL), a 330MW mine-mouth coal-fired power plant located at Thar Block II. HUBCO owns a 60% stake in TEL. Similarly, the IPP intends to offer a further $20 million in guarantees to ThalNova Power Thar (Private) Limited (TN), a 330 MW mine-mouth coal-fired power plant established at Thar Block II, Thar Coal Mine, Sindh. HUBCO, through its wholly owned subsidiary, Hub Power Holdings Limited (HPHL), presently holds 38.3% shares in TN. The guarantees will be structured either as equity or subordinated debt. HUBCO stated that the tenor of the support will be extended until January 2034 for TEL and July 2034 for TN, or until the end of each project's loan term, whichever is later. The IPP was of the view that achieving completion for both projects marks a significant milestone that would allow them to generate distributable surplus and pay dividends. The company shared that it has already invested approximately $79 million in TEL and $52 million in TN, and both projects operate under the Government of Pakistan's 2015 Power Policy, which offers a 20% return on equity in USD terms.
Business Recorder
08-07-2025
- Business
- Business Recorder
PSX loses steam after record-setting rally, KSE-100 down 500 points
After days of bullish momentum, selling pressure was observed at the Pakistan Stock Exchange (PSX) as investors resorted to profit-taking amid uncertainty over US tariff hikes, with the benchmark KSE-100 Index losing over 500 points during the opening hours of trading on Tuesday. At 10:15am, the benchmark index was hovering at 132,868.89 level, a decrease of 501.25 points or 0.38%. Selling was witnessed in key sectors including automobile assemblers, commercial banks, cement, fertilizer, oil and gas exploration companies and power generation. Index-heavy stocks including HUBCO, MARI, OGDC, PSO, MCB, MEBL and UBL traded in the red. On Monday, PSX continued its record-breaking advance, as the market's bullish sentiment, buoyed by strong corporate earnings expectations, receding trade-related anxieties, and improved macroeconomic indicators. The benchmark KSE-100 Index surged by 1,421 points or 1.08% to close at an unprecedented 133,370 points. Globally, Asian stock markets took in stride the latest twist in US President Donald Trump's tariff roll-out on Tuesday, as the dollar held onto gains and oil retreated. Shares on Wall Street fell after Trump sent letters to 14 countries, including Japan and South Korea, unveiling sharply higher tariffs on imports into the United States, while also postponing their implementation to August 1. Japan's Nikkei stock gauge opened lower but then turned positive after Trump described that deadline as 'firm, but not 100% firm' and said tariffs may be adjusted for some countries. In April, Trump capped all of the so-called reciprocal tariffs with trading partners at 10% until July 9 to allow for negotiations. Only two agreements, with Britain and Vietnam, have been reached. In June, Washington and Beijing agreed on a framework covering tariff rates, restoring a fragile truce in their trade war. Tariffs on Japan and South Korea are now due to go up to 25% on August 1. Japanese Prime Minister Shigeru Ishiba called the hike deeply regrettable and said his nation would continue negotiations with the US. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2% in early trade. Japan's Nikkei stock index rose 0.4% while South Korea's KOSPI jumped 1.5%. This is an intra-day update
Business Recorder
01-07-2025
- Business
- Business Recorder
PSX starts FY26 on a positive note, KSE-100 settles at new record high
The Pakistan Stock Exchange (PSX) entered the fiscal year 2025-26 on a bullish note, with the benchmark KSE-100 Index settling at a new record high on Tuesday. Positive momentum was observed throughout the trading session, pushing the KSE-100 Index to an intra-day high of At close, the benchmark index settled at 128,199.42, an increase of 2,572.11 points or 2.05%. Buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies and power generation. Index-heavy stocks, including HUBCO, MARI, PRL, POL, MCB, MEBL and NBP traded in the green. 'The rally comes on the back of budget clarity and declining interest rates, prompting increased equity exposure from domestic investors,' Mohammed Sohail, CEO Topline Securities, said in a note. Meanwhile, Waqas Ghani, Head of Research at JS Global, attributed the rally to an improved geopolitical outlook and a strengthening macroeconomic environment. PM Shehbaz lauds record run Prime Minister Shehbaz Sharif, in a statement, termed the stock market performance 'a manifestation of the fact that the confidence of the business community and investors in the country's economy and government policies is getting stronger and stronger with each passing day'. He added that due to the government's policies in the last fiscal year, the country's economy gradually showed a good recovery. 'The new fiscal year will prove to be a milestone in the journey towards improving the country's economy,' he said. On Monday, the PSX concluded the last day of fiscal year 2024-25 on a powerful note, fueled by strong fiscal year-end flows, active institutional participation and a significant external financing development that improved investor sentiment. By the close of the session, the benchmark KSE-100 Index had surged by 1,248.25 points, or one percent, settling at a record 125,627.31 points, soaring to an all-time closing. Globally, Asian shares crept higher and the dollar languished near multi-year lows on Tuesday as markets awaited a vote over US President Donald Trump's landmark tax and spending legislation. Global shares reached an intraday record on Monday on trade optimism, but a marathon debate in the Senate over a bill estimated to add $3.3 trillion to the United States' debt pile weighed on sentiment. Japan's Nikkei gauge of shares sank as much as 1.1% as the yen climbed. Oil fell for a second consecutive session, and gold advanced. A vote on Trump's sweeping tax-cut and spending bill had been expected during the Asian trading day on Tuesday, but debate raged on over a long series of amendments by Republicans and the minority Democrats. Trump wants the bill passed before the July 4 Independence Day holiday. As global trade negotiators scramble to get deals done before Trump's tariff deadlines, investors are also anticipating key U.S. labour market data on Thursday. Payrolls data later in the week 'does have a significant bearing, I think, on sentiment towards the potential timing of Fed rate cuts,' he added in a podcast. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5%, led by South Korea's Kospi gauge, which rose 1.8%. This is an intra-day update
Business Recorder
01-07-2025
- Business
- Business Recorder
PSX starts FY26 on a positive note, KSE-100 surges nearly 1,100 points
The Pakistan Stock Exchange (PSX) entered the fiscal year 2025-26 on a bullish note, with the benchmark KSE-100 Index gaining nearly 1,100 points during the opening minutes of trading on Tuesday. At 9:50am, the benchmark index was hovering at 126,708.23 level, an increase of 1,080.92 points or 0.86%. Buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies and power generation. Index-heavy stocks, including HUBCO, MARI, PRL, POL, MCB, MEBL and NBP traded in the green. On Monday, the PSX concluded the last day of fiscal year 2024-25 on a powerful note, fueled by strong fiscal year-end flows, active institutional participation and a significant external financing development that improved investor sentiment. By the close of the session, the benchmark KSE-100 Index had surged by 1,248.25 points, or one percent, settling at a record 125,627.31 points, soaring to an all-time closing. Globally, Asian shares crept higher and the dollar languished near multi-year lows on Tuesday as markets awaited a vote over US President Donald Trump's landmark tax and spending legislation. Global shares reached an intraday record on Monday on trade optimism, but a marathon debate in the Senate over a bill estimated to add $3.3 trillion to the United States' debt pile weighed on sentiment. Japan's Nikkei gauge of shares sank as much as 1.1% as the yen climbed. Oil fell for a second consecutive session, and gold advanced. A vote on Trump's sweeping tax-cut and spending bill had been expected during the Asian trading day on Tuesday, but debate raged on over a long series of amendments by Republicans and the minority Democrats. Trump wants the bill passed before the July 4 Independence Day holiday. As global trade negotiators scramble to get deals done before Trump's tariff deadlines, investors are also anticipating key U.S. labour market data on Thursday. Payrolls data later in the week 'does have a significant bearing, I think, on sentiment towards the potential timing of Fed rate cuts,' he added in a podcast. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5%, led by South Korea's Kospi gauge, which rose 1.8%. This is an intra-day update
