HUBCO Issues $150 Million Standby Letter of Credit to CPHGC

Hubco has issued a Standby Letter of Credit (SBLC) worth $150 million to China Power Hub Generation Company Limited (CPHGC). According to the company’s stock filing, Hubco as a joint venture partner and Pakistani sponsor of CPHGC provided security in the form of an SBLC of $150 million in favor of CPHGC expiring on November 23, 2022. An encashment notice has been served today by CPHGC under the SBLC on the issuing bank, stated the stock filing. It added: “As the first and largest independent power producer in Pakistan, Hubco remains committed to providing the country with affordable and uninterrupted energy and taking any and all necessary actions to protect the best interests of its shareholders”. At the time of filing this report, the scrip of the company was being traded at Rs. 67.11, down by Rs. 2.02 or 2.92 percent, and a turnover of 7,317,234 shares on Wednesday.