As per the PSX notice, Nishat Power Limited (NPL) has received PKR 5,701 million from the power purchaser in the form of one-third each: cash, Government Ijara Sukuk, and Pakistan Investment Bonds – as first installment out of the two tranches agreed under the Circular Debt resolution plan. Moreover, the second installment (PKR 8,552 million) is expected to be disbursed in June 2022.
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Power Cement To Get 7MW Electricity on 40 Percent Lower Rates Without Capex: PSX
Earlier, the payment mechanism agreed between the govt. and IPPs was as follows:
• 1st Installment: 40 percent of outstanding amount (breakup: 33.3 percent Cash, 33.3 percent Government Ijara Sukuk and 33.3 percent floating Pakistan Investment Bonds)
• 2nd Installment: 60 percent of outstanding to be paid after six months (breakup: 33.3 percent Cash, 33.3 percent
Government Ijara Sukuk and 33.3 percent floating Pakistan Investment Bonds)
This development will enhance the liquidity position of the company. As of September 2021, the NPL’s total liabilities are PKR 4,493 million. If the company retires 40 percent of its outstanding liabilities which will be equivalent to PKR 1,797 million, then it has PKR 11.03/share free cash for dividend distribution.
