The shareholders of Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer (IPP), have approved the provision of financial guarantees worth up to $51 million to support two of its key Thar-based coal projects, i.e. Thar Energy Limited (TEL) and ThalNova Power Thar (Private) Limited (TN).
The IPP disclosed the development in its latest notice to the Pakistan Stock Exchange (PSX).
The decision was approved during an extraordinary general meeting (EoGM), held on August 7, 2025, where the company’s shareholders passed resolutions authorising guarantees — in the form of standby letters of credit — of up to $31 million for TEL and up to $20 million for TN to cover funding shortfalls through equity and/or subordinated debt.
HUBCO proposes $51mn investment in Thar-based coal projects
The company has also authorised its top management to negotiate with banks and financial institutions, provide security as required, and execute all necessary agreements and documentation to facilitate the issuance and maintenance of these guarantees.
TEL is a 330MW mine-mouth coal-fired power plant located at Thar Block II. HUBCO owns a 60% stake in the company.
Meanwhile, TN is also a 330 MW mine-mouth coal-fired power plant established at Thar Block II, Thar Coal Mine, Sindh. HUBCO, through its wholly owned subsidiary, Hub Power Holdings Limited (HPHL), presently holds 38.3% shares in TN.
Earlier, HUBCO, in its filing to the PSX, shared that it has already invested approximately $79 million in TEL and $52 million in TN, and both projects operate under the Government of Pakistan’s 2015 Power Policy, which offers a 20% return on equity in USD terms.
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