HUBCO Shareholders Approve $51 Million Guarantees for Thar Coal Projects

The ownership of Hub Power Company Limited (HUBCO), the country’s premier Independent Power Producer (IPP), has sanctioned the allocation of financial guarantees amounting to $51 million. These guarantees will bolster two significant coal ventures situated in Thar: Thar Energy Limited (TEL) and ThalNova Power Thar (Private) Limited (TN).

The IPP made this announcement in a recent notification to the Pakistan Stock Exchange (PSX).

The resolution was passed during an extraordinary general meeting (EoGM) on August 7, 2025. Company shareholders approved the issuance of guarantees—specifically, standby letters of credit—totaling up to $31 million for TEL and $20 million for TN. These are intended to address funding gaps through equity or subordinated debt.

HUBCO’s Proposed Investment

The company has empowered its senior management to engage in negotiations with banks and financial institutions, pledge collateral as necessary, and finalize all pertinent agreements and documentation required for the issuance and upkeep of these guarantees.

Project Details
  • TEL is a 330MW power plant fueled by coal extracted directly from the mine located in Thar Block II. HUBCO possesses a 60% ownership stake in TEL.
  • TN, also a 330 MW mine-mouth coal-fired power plant, is situated in Thar Block II, Thar Coal Mine, Sindh. Through its fully owned subsidiary, Hub Power Holdings Limited (HPHL), HUBCO currently holds a 38.3% share in TN.

Previously, HUBCO disclosed in its PSX filing that it had already invested roughly $79 million in TEL and $52 million in TN. Both ventures operate in accordance with the Government of Pakistan’s 2015 Power Policy, which stipulates a 20% return on equity in USD terms.