KESC confirms $50m shareholding investment of IFC, ADB


The Karachi Electric Supply Company (KESC) confirmed investment grants of $ 25 million each from the International Finance Corporation (IFC) and Asian Development Bank (ADB).
The investments made the two multilateral agencies equity holders of KESC. IFC, a member of the World Bank Group, and ADB subscribed to additional share capital by increasing their original $ 50 million offer to $ 275 million. As per the loan financing agreement signed by the 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 Dec 31, 2012. This debt financing was provided by the two institutions to partly finance the KESC’s state-of-the-art and one of the most efficient power plants, the 560 MW BQPS-II. This 560 MW plant has successfully been installed and commissioned ahead of its planned schedule. The endorsement by IFC and ADB is being hailed by the KESC as a positive omen for international investor confidence not only in the utility but also in the Pakistani economy.
In a statement issued on Thursday, the KESC said the development reflected confidence of the two leading international financial institutions in the way KESC was being run.