Share this story!            

HBL, NBP arrange financing for urea expansion

KARACHI: Habib Bank Limited and National Bank of Pakistan have arranged a multi-currency financial facility for the urea expansion project of Engro Chemical Pakistan Limited.

According to banking sources here Tuesday, the facility included Rs 2.137 billion of local currency, 120 million Euros and 70 million dollars of foreign currency.

HBL and NBP are the lead advisors and arrangers for this short-term facility which is repayable in next ten years.

An analyst at KASB Securities, Shagufta Irshad said that the new plant would cost 1 billion dollars and enhance the production of Engro Chemical by 1.3 million tons of urea per annum.

Presently, Engro is producing 975,000 metric tons of urea per year and is one of four urea manufacturers in Pakistan who are producing 5.6 million tons of urea in the country.

She said that the machinery for the plant is expected to arrive at the end of next year and the plant will be commissioned in mid 2010. app

Home | Business

Share this story!