Karachi Electric Supply Company (KESC) has confirmed receiving the investment of $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 $50 million of their original $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 $50 million of their debt into equity before December 31, 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 560mw BQPS-II. This 560mw 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 country's economy.-PR

Copyright Business Recorder, 2012