In a latest notification to the Pakistan Stock Exchange, the Nishat Power Limited (PSX:NPL) has announced that the company’s long term Project financing has been settled today. The company has secured this project financing from a consortium of banks for a period of 10 years.
The company further informed that the finance was repayable in 40 quarterly installments starting from commercial operation dates from June 09, 2010 and ending on July 01, 2020.
The finance has been fully settled today 30th June, 2020 by making repayment of the last installment of PKR 654.637 Mn . As the annual debt service component is a part of the agreed tariff for cash flow purposes, the repayment of finance will reduce to the extent of approximately PKR 2,500 Mn annually viz-a-viz availability of agreed capacity.
This will accordingly reduce the profitability of the company to the above extent, going forward.