Karachi, November 30, 2012 (PPI-OT): The International Finance Corporation (IFC) and Asian Development Bank (ADB) would invest up to USD 25 million each equivalent in common shares of Karachi Electric Supply Corporation (KESC).
According to Alfalah Securities Limited, the loan financing agreement was signed by IFC and ADB with KESC in 2010 wherein the two international institutions will have the right to convert up to USD 50 million of their debt into equity before Dec 31, 2012. It will not only lower the debt burden of KESC but also improve profitability due to lower financial charges on the income statement. The issuance of new shares would dilute the per share earnings however, it still bodes well for KESC as it would provide more room to take up further financing. KESC is currently trading at PKR 7.03 on the stock market.