29 March 2007 

HSBC SIGNS CZECH ECA TRANSACTION IN SUPPORT OF POWER PROJECT IN PAKISTAN 

The Project and Export Finance division of HSBC Bank plc and Czech Export Bank have signed a US$45m facility to provide Škodaexport, Co. Ltd. with the guarantees required in relation to their Engineering, Procurement and Construction (EPC) contract for a 225MW independent power generation project developed by the Orient Power Company Limited in Pakistan. The transaction was supported by the Export Guarantee and Insurance Corporation ("EGAP"), the official Export Credit Agency (ECA) of the Czech Republic.


HSBCs Project and Export Finance division, a world leader in structuring and arranging ECA-supported facilities, has identified Pakistan as a key market for future growth in this business. HSBC expects ECAs to play a significant role in financing Pakistans capital expenditure requirements over the next decade, primarily in the energy sector.

On the occasion of this facility execution, Muhammad Tahir Sadiq, HSBC Pakistan CEO, said We are very pleased to have supported Pakistans first IPP to reach financial close under the 2002 power policy, a reflection of HSBCs strength in project and export finance. Going forward, HSBC sees strong potential for this business in Pakistan and is committed to playing an active role in the country, consistent with its global expertise.

While this facility is the first major EGAP-supported transaction in Pakistan, it is anticipated that several other similar transactions will be executed in the coming months reflecting Skodaexports success in securing contracts in the country.
Jeff Bailey, Managing Director, HSBC Project and Export Finance, said We are delighted to have concluded this landmark financing facility which highlights the strength of our global ECA capabilities, experience in the power sector, and capabilities in Pakistan. HSBC expects to be closely involved with the financing of several other major infrastructure projects in Pakistan in the near future.