Karachi: The Hub Power Company Limited has scheduled an Extraordinary General Meeting (EGM) on August 7, 2025, in Karachi. The meeting aims to discuss and potentially approve significant investment decisions, including providing guarantees for Thar Energy Limited and ThalNova Power Thar (Private) Limited.
According to publicly available information, the meeting notice was published in both English and Urdu newspapers, "Business Recorder" and "Nawa-i-Waqt," on July 17, 2025. The announcement follows previous resolutions passed by the company's members in 2018 and 2019, focusing on supporting these energy projects.
The agenda includes a proposal to provide a guarantee, in the form of a standby letter of credit, for Thar Energy Limited. This guarantee, valued at up to USD 31 million or its equivalent in Pakistani Rupees, aims to cover investment shortfalls through equity or subordinated debt. The investment is set to extend until at least January 2034 or the end of the project loan term.
In addition, the company will consider a similar guarantee for ThalNova Power Thar (Private) Limited, amounting to USD 20 million or the equivalent in Pakistani Rupees. This investment will last until July 2034 or the project loan's conclusion. Both resolutions require member approval under Section 199 of the Companies Act, 2017.
The resolutions authorize key company executives, including the Chief Executive Officer, Chief Financial Officer, and the Company Secretary, to negotiate and amend the standby letters of credit and related agreements with financial institutions. The executives are empowered to secure the necessary documentation and undertake actions to facilitate the guarantees.
According to information available from the Pakistan Stock Exchange (PSX), these developments are categorized under the designated market category, reflecting the company's strategic initiatives and potential impacts on its financial commitments.
The meeting will also address any other business topics as permitted by the chair, allowing for additional discussions beyond the primary agenda items.