A summary was put forward by the petroleum division in 2015 for a financial support regarding the completion pf the phase 2 of LNG-II project. It was approved in favour of SSGCL and SNGPL for 101 billion rupees. It was also asked to provide a guarantee to the government that both the gas companies will be financially assisted by the commercial banks. The summary was approved by Economic Coordination committee (ECC).
Earlier, the SSGCL acquired sovereign guarantee from the finances department to swap a loan of Rs21 billion for the LNG-II project given by Habib Bank Limited with Faisal Bank limited. The deal was done keeping in view the mark up rate which was decided comparatively lower to the previous deal.
Due to the higher pricing pf the loan, it was decided by the SSGCL to swap the loan with a lower mark up rate. Faisal Bank limited offered syndicated Tem finance facility at a six month KIBOR + 10 bps. The petroleum division reminded that this matter does not require the guarantee of the government as it is not a new case and the guarantee of the existing bank is required to be re issued after the issuance of LOC. Petroleum division also advised the ECC to gain the approval of sovereign guarantee for Rs21 billion for the remainder of tenure.
