Bank of Punjab leads PKR 17 billion Islamic facility for Novacare hospital in Islamabad

The Bank of Punjab has marked the financial close of a PKR 17 billion syndicated Islamic project finance facility for Novacare Hospitals (Private) Limited, financing a 250-bed tertiary care hospital and a feeder clinic in Islamabad.

The bank said the transaction is Pakistan's first greenfield hospital financed under a syndicated Islamic project finance facility, a structure it described as a precedent for mobilising long-term financing for healthcare infrastructure. Sponsors are contributing PKR 11.5 billion in equity against a total project cost of approximately PKR 28.5 billion, according to the announcement. Novacare is described as Pakistan's first and only hospital affiliated with Imperial College Healthcare NHS Trust.

BOP arranged and structured the facility as intercreditor agent and acted as joint mandated lead adviser and arranger alongside United Bank Limited and Habib Bank Limited, with Pak China Investment Company Limited as co-arranger. PAIR Investment Company Limited and Pak Libya Holding Company Limited participated as syndicate financiers. BOP's own commitment is PKR 5.8 billion.

Zafar Masud, president and chief executive of The Bank of Punjab, said the project meant more to the bank than a financing transaction. He said it was an investment in the care, dignity and wellbeing of the people the hospital will serve, and added that the framework established could make it easier for future healthcare projects in Pakistan to access long-term capital.

Hans Kedzierski, chief executive of Novacare Hospitals, thanked the participating institutions and set out the hospital's aim of delivering international standards of care in Pakistan. Masud said financial close was an important milestone but that the real achievement would come when the hospital opens to patients.