Ghani Chemical Industries Limited’s (PSX: GCIL) members approved a further investment of up to Rs. 1,862,980,000 in GHG Emissions Mitigation Limited (GEM), an associated company of GCIL, through subscription of 186.298 million right shares of Rs. 10 each, to be issued by GEM.
The Chief Executive Officer, Executive Director and/or Company Secretary of GCIL are singly empowered and authorized to undertake the decision of said investment as and when required, and to perform all acts, deeds, matters and things deemed necessary, proper or expedient to give effect to the resolution.
Members also approved a Sponsor Support Agreement (SSA) with Habib Bank Limited and/or other financiers to arrange financing facilities for GEM, including a Letter of Credit facility of up to $38m (±5%) and a funded facility of up to Rs14.40billion, the company’s filing on PSX revealed today.
These facilities will finance GEM’s gas mitigation and energy production facility near the Sachal Gas Processing Complex.
Under the SSA, GCIL is authorised to provide sponsor support strictly limited to its proportionate shareholding in GEM.
This includes funding cost overruns required to achieve project completion and funding the project’s base equity contribution requirements in compliance with the financiers’ requirements.
Additionally, GCIL is authorised to fund the Debt Service Reserve Account in cash or arrange a letter of credit in favour of the financiers to fulfil GEM’s debt service reserve requirements.
GCIL may also provide or issue any letter of comfort as may be required by the financiers in connection with the facilities, each subject to and in accordance with the terms and conditions of the SSA and the facilities.
Reference Link:- https://mettisglobal.news/GCIL-approves-Rs186bn-investment-in-GEM-60817