Novacare Hospital Islamabad: BOP leads structuring of Rs17bn Islamic project finance facility

The Bank of Punjab (BOP) has closed a syndicated Islamic project loan worth Rs17 billion for Novacare Hospitals (Private) Limited, Business Recorder reported. The signing event brought the project sponsors, the company's management and the lenders together. BOP led the structuring as Intercreditor Agent and also took a Rs5.8 billion share of the financing.

The money will go toward a hospital in Islamabad with 250 beds for tertiary care, plus a satellite clinic. Novacare is the sole Pakistani hospital linked to Imperial College Healthcare NHS Trust. Sponsors are putting in Rs11.5 billion of equity against a total project cost of roughly Rs28.5 billion, and the deal is described as the first greenfield hospital in the country funded through a syndicated Islamic structure.

United Bank Limited and Habib Bank Limited worked alongside BOP as lead advisers and arrangers, while Pak China Investment Company Limited served as co-arranger. PAIR Investment Company Limited and Pak Libya Holding Company Limited joined as syndicate financiers. BOP chief executive Zafar Masud said healthcare touches everyone and that the bank sees the project as an investment in patients' care and wellbeing rather than simply a financing deal.