KARACHI: The Hub Power Company Limited (HUBCO), Pakistan’s largest Independent Power Producer, has secured shareholder approval to provide financial guarantees worth up to \$51 million for its two Thar-based coal projects — Thar Energy Limited (TEL) and ThalNova Power Thar (TN).
The approval was granted at an extraordinary general meeting on August 7, 2025, authorising standby letters of credit of up to \$31 million for TEL and \$20 million for TN to bridge potential funding gaps through equity and/or subordinated debt. HUBCO’s management has also been empowered to negotiate with banks, arrange security, and execute all required agreements for the issuance and maintenance of these guarantees.
TEL, in which HUBCO holds a 60% stake, is a 330MW mine-mouth coal-fired plant at Thar Block II. TN, with HUBCO’s 38.3% shareholding via its subsidiary Hub Power Holdings Limited, is also a 330MW mine-mouth coal project at the same site.
HUBCO has already invested around \$79 million in TEL and \$52 million in TN. Both plants operate under the Government of Pakistan’s 2015 Power Policy, which offers a 20% USD-based return on equity.
