The Bank of Punjab (BOP) is proud to have led another syndicated term finance facility for Orient Petroleum Inc. Successful financial close of this facility was made possible through the collaboration and support of our esteemed partners as Joint Lead Arrangers: Faysal Bank Limited, BankIslami Pakistan Limited and Dubai Islamic Bank.
This significant milestone was celebrated at a signing ceremony in Karachi, attended by Mr. Kamran Ahmed, CEO Orient Petroleum Inc., and the Presidents and representatives of the participating banks.
The Bank of Punjab (BOP), as the Mandated Lead Arranger, Agent Bank, Security Trustee, Accounts Bank and Shariah Structuring Bank, has successfully led a PKR 4.5 billion syndicated term finance facility for Orient Petroleum Inc. (OPI), along with partner banks Faysal Bank Limited, BankIslami Pakistan Limited and Dubai Islamic Bank Pakistan Limited, which were Joint Lead Arrangers. RIAA Barker Gillette Pakistan acted as the lenders’ legal counsel for the facility.
This term finance facility will be utilized to finance the developmental capital expenditure of OPI’s oil and gas fields across Pakistan and help save precious foreign currency on the import of oil and gas. The successful closure of this facility is a testament to the banking sector’s trust in OPI and commitment to Pakistan’s economic progress.
The Bank of Punjab (BOP) successfully led a PKR 4.5 billion syndicated term finance facility
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Karachi, Pakistan – In a significant development for Pakistan’s energy sector, Bank of Punjab has successfully arranged a landmark term finance facility for Orient Petroleum Incorporated (OPI). The facility, totaling an impressive 7.5 billion rupees, will support OPI’s development of new and upcoming oil and gas fields across the country.
The ceremony to mark the successful closure of the transaction was attended by key figures from both OPI and Bank of Punjab. Mr. Kamran Ahmed, CEO of Orient Petroleum, expressed his gratitude to the bank and its partner institutions for their support. He emphasized that this term finance would not only help OPI fund its expansion but also play a crucial role in saving foreign exchange for Pakistan, reducing the country’s reliance on imported energy.
Mr. Farid Ahmed Khan, Group Chief Corporate and Investment Banking at Bank of Punjab, highlighted the bank’s commitment to supporting OPI’s growth. He noted that over the past year, Bank of Punjab and its syndicate partners have provided OPI with over half a billion rupees in funding, which has been utilized for capital expenditure and field development. This ongoing support reflects the bank’s confidence in OPI’s potential to contribute to Pakistan’s energy security.
Mr. Zafar Masud, President & CEO of Bank of Punjab, hailed the successful closure of the transaction as a significant milestone for both the bank and the energy sector. He emphasized the importance of such banking facilities in meeting the country’s growing energy needs and highlighted the challenges involved in structuring and understanding oil and gas industry transactions.
The syndicated facility will be used to develop the Sinjoro, Rotana, and Waziristan fields (Bannu), which are expected to have a positive impact on Pakistan’s energy production. By providing OPI with the necessary financial resources, Bank of Punjab has demonstrated its commitment to supporting the growth of the energy sector and contributing to the country’s economic development.
This landmark transaction is a testament to the collaborative efforts of Bank of Punjab, OPI, and their partner institutions. It underscores the importance of public-private partnerships in driving economic growth and addressing critical challenges such as energy security. As OPI continues to expand its operations, the benefits of this financing facility are expected to be felt throughout Pakistan, from increased energy production to job creation and foreign exchange savings.
Beyond the immediate benefits of increased energy production, this partnership has several broader implications for Pakistan’s economy. By reducing the country’s reliance on imported energy, the project will help to strengthen Pakistan’s energy security and reduce its vulnerability to global price fluctuations. Additionally, the development of new oil and gas fields will create jobs and stimulate economic activity in the regions where these fields are located.
The successful closure of this financing facility also sends a positive signal to investors and international financial institutions, demonstrating Pakistan’s commitment to attracting foreign investment and promoting sustainable economic development. As the country continues to implement reforms and improve its business environment, it is expected to attract even more investment in the energy sector and other key industries.
In conclusion, the partnership between Bank of Punjab and Orient Petroleum marks a significant milestone for Pakistan’s energy sector. By providing the necessary financing to support OPI’s expansion, Bank of Punjab has played a crucial role in driving economic growth and enhancing the country’s energy security. As OPI develops new oil and gas fields, the benefits of this project will be felt throughout Pakistan, contributing to a more prosperous and self-sufficient nation.