Karachi: Karachi Electric Supply Company KESC has confirmed receiving the investment of USD 25 Million each, from International Finance Corporation IFC and Asian Development Bank ADB, which now makes these two Multilateral Agencies, equity holders in KESC.
IFC a member of the World Bank Group and ADB have subscribed to additional share capital by converting USD 50 Million of their original USD 275 Million financing facility to the power utility. As per the loan financing agreement signed by IFC and ADB with KESC in 2010, the two international institutions had the right to convert up to USD 50 million of their debt into equity before 31 Dec 2012. This debt financing was provided by the two institutions to partly finance KESC’s state-of-the-art and one of the most efficient power plants, the 560 MW BQPSII. This 560 MW plant has successfully been installed and commissioned mid of this year 2012, ahead of its planned schedule.
This encouraging endorsement by IFC and ADB is being hailed by KESC as a positive sign paving way for international investor confidence not only in the utility but also in the Pakistan economy. KESC stated that this latest development is reflective of the confidence these two leading international financial institutions repose in the turnaround progress of KESC and it will go a long way in providing greater financial leverage to KESC and also create savings in terms of reduction in the servicing of financial charges.