Key Takeaways
- The Bank of Punjab (BOP) has structured a PKR 17 billion Islamic Project Finance Facility for Novacare Hospitals in Islamabad.
- The facility will support the development of a 250-bed tertiary care hospital and a feeder clinic.
- This is Pakistan’s first greenfield hospital financed under a Syndicated Islamic Project Finance Facility.
The Bank of Punjab (BOP) has successfully structured and closed a PKR 17 billion Islamic Project Finance Facility for Novacare Hospitals (Private) Limited, marking a significant milestone in Pakistan’s healthcare infrastructure development.
The facility, which will support the construction of a 250-bed tertiary care hospital and a feeder clinic in Islamabad, is a first-of-its-kind project in Pakistan, as it is the country’s first greenfield hospital financed under a Syndicated Islamic Project Finance Facility.
With sponsors contributing PKR 11.5 billion in equity, the total project cost is estimated at approximately PKR 28.5 billion. BOP acted as Intercreditor Agent and Joint Mandated Lead Advisor & Arranger, alongside United Bank Limited and Habib Bank Limited, with Pak China Investment Company Limited as Co-Arranger. Participating syndicate financiers include PAIR Investment Company Limited and Pak Libya Holding Company Limited.
Mr. Hans Kedzierski, CEO of Novacare Hospitals (Private) Limited, expressed gratitude towards the participating institutions, emphasizing Novacare’s vision of delivering international standards of healthcare in Pakistan, with a focus on patient care and empathy.
Speaking at the signing ceremony, Mr. Zafar Masud, President & CEO of The Bank of Punjab, highlighted the importance of healthcare, stating, 'Healthcare touches every one of us. At some point, we have needed care for ourselves or someone we love, and we understand the difference that a good hospital and a skilled doctor can make.'
Mr. Masud further elaborated, saying, 'Bringing this project to financial close required conviction from the sponsors and close collaboration among all six participating institutions. Together, we have established a financing framework that we hope will make it easier for future healthcare projects in Pakistan to access long-term capital.'
The transaction underscores BOP’s commitment to financing projects that strengthen essential infrastructure and deliver lasting economic and social benefits. Mr. Masud concluded by saying, 'We look forward to supporting Novacare through construction and commissioning, and to seeing this vision become a place of healing and hope.'
The facility represents a significant step towards improving healthcare infrastructure in Pakistan and sets a precedent for future projects. BOP’s financing commitment of PKR 5.8 billion reflects its confidence in the project and its importance to the healthcare sector.
Healthcare touches every one of us. At some point, we have needed care for ourselves or someone we love, and we understand the difference that a good hospital and a skilled doctor can make.
Mr. Zafar Masud, President & CEO of The Bank of Punjab
Bringing this project to financial close required conviction from the sponsors and close collaboration among all six participating institutions. Together, we have established a financing framework that we hope will make it easier for future healthcare projects in Pakistan to access long-term capital.
Mr. Zafar Masud, President & CEO of The Bank of Punjab
