Monday, May 27, 2024

WAPDA to Raise $500 Million through Eurobonds

Dawn news reported that, in its next meeting, The Economic Coordination Committee (ECC) of the cabinet is looking forward to confirm the issuance of Eurobonds by the Water and Power Development Authority (WAPDA).

WAPDA has progressed a summary along the Ministry of Water Resources to dispatch $500 million Eurobonds. This is objected at increasing the funds to meet the international financing needs of the Diamer-Bhasha and Mohmand dams.

Even though about $2 billion is required for financing these projects, but WAPDA has decided to increase funding gradually, with the building needs and in a step -by-step process to keep away financing costs.

These would be the first bonds gave by the authority without the sovereign assurance of the government. WAPDA is probably to be permitted to go forward with the issue based on the positive corporate family ratings by directing foreign credit agencies, for example, the B3 stable ranking by Moody’s.

WAPDA has earlier given agreement for both dams to two Chinese consortiums. The agreement for the Diamer-Basha dam has been given for Rs. 442 billion, and for Mohamad dam for Rs. 310 billion. The establishment for these two dams started in May 2020 and June 2020, separately.

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