Rs22bn to be raised for ARL

ISLAMABAD: A consortium of four Pakistani banks will raise Rs22 billion for the up-gradation project of Attock Oil Refinery (ARL) to enhance refining capacity, announced the ARL at their financial close on Tuesday.
Speaking at the ceremony of financial close, ARL Chief Executive Adil Khattak said that the project would prove to be of immense value not only for ARL but also for the country.The project comprises preflash unit, naphtha isomerisation unit, diesel hydro desulphurisation (DHDS) unit and expansion of existing captive power plant.

The installation of preflash unit would increase ARL refining capacity by 10,400 barrel per day thus increasing the production of vital middle distillates.

While the isomerisation unit will enhance production of motor gasoline by 20,000 metric tonnes per month, the DHDS unit will enable ARL to produce Euro-II compliant low sulphur diesel.

The consortium of banks, led by Bank AL Habib, Meezan Bank, Faysal Bank and Allied Bank, acted as lead advisors and arrangers to raise the amount of Rs22bn for debt requirement of the project.

The financing amount has been arranged through a combination of conventional and Islamic finance structures.

Additionally, letters of credit for off-shore supplies and services amounting in aggregate of $143 million have also been established under a separate consortium of banks participated by Al Baraka Bank, Allied Bank, Askari Bank, Burj Bank, Bank Al-Habib, Faysal Bank, Habib Bank, MCB, Meezan Bank, Pak Kuwait Investment Company, Soneri Bank, Bank of Punjab and United Bank.