Govt to clear Hubco’s bills in cash, bonds
Business
February 3, 2021
KARACHI: The government is expected to clear overdue payments of independent power producer Hubco in cash and bonds, according to a filing with the stock exchange.
Hub Power Company Limited (Hubco) and the Central Power Purchasing Agency (CPPA) initialed the agreement under which the CPPA is expected to pay Hubco’s receivables in two installments of 40 percent and 60 percent, respectively, within 30 business days, said a notice to the bourse. The initial 40 percent settlement is expected to take place in the form of one-third in upfront cash and the remaining two-third in the form of financial instruments – Pakistan investment bonds and sukuk.
HUBCO and CPPA Enter an Agreement for Payment of Overdue Receivables
The Hub Power Company Limited (HUBCO) and the Central Power Purchasing Agency [CPPA] (Guarantee) Limited (Power Purchaser) have initialed an agreement in furtherance of the Memorandum of Understanding (MoU) dated 21 August 2020, according to a notification issued to the Pakistan Stock Exchange (PSX).
Under the agreement between the HUBCO and the CPPA, the payment of overdue receivables is an integral part of it, and the payment mechanism envisaged is two installments, with 40 percent of the overdue receivables payable within 30 business days of signing it (comprising a third of cash and two-thirds of the financial instruments of the Pakistan Investment Bonds (PIBs) and Sukuks), and the remaining 60 percent payable six months thereafter through the same method as that of the first installment.