Pakistan Economy_Second tranche to IPPs approved, (AKD Daily, Nov 24,2021)
AKD Daily
Pakistan Economy: Second tranche to IPPs approved
- Federal Government gave green light to the 2nd payment to be made to IPPs in lieu of their outstanding receivables. The approval of the same by the Cabinet would pave way for disbursement of PkR134bn to IPPs.
- This follows the 1st installment of PkR89.8bn made to the IPPs (of which ~30bn was made in cash) in Jun’21 and will take the total payments, made under the tariff re-negotiation agreement back in Feb’21, to PkR225bn.
- As per news reports, the amount is likely to be transferred to the IPPs by Dec 3 where HUBCO is expected to receive PkR34.8bn, KAPCO PkR59.4bn, Rousch Power PkR8.5bn, Fauji PkR2.6bn, PakGen PkR9.8bn and Lalpir PkR9.3bn. While another PkR6bn is to be shared between KEL, Saba Power and FFC.
- While the details of the structure of the 2nd tranche are scant, we expect the GoP to structure the transaction such that only a partial payment is made in cash while the remaining payments will be made in kind (through PIBs and Sukuks).
- As seen in the immediate aftermath of the last settlement where the IPPs announced a dividend payout (HUBC PkR5.0/sh and KAPCO 3.5/sh), second tranche of the settlement may again trigger a dividend payment from these IPPs which may bring them in limelight again.
AKD Research
Hub Power Company is a holding company. Through its subsidiaries, Co. is engaged as a power producer in Pakistan that focuses on developing, owning, operating and maintaining power stations. Co. supplies electricity to Water and Power Development Authority and National Transmission and Despatch Company under long term Power Purchase Agreements for its Hub and Narowal plants respectively.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.