Overview

• An agreement with 18 commercial banks sets a six-year facility priced at three-month KIBOR minus 0.9%, to be repaid in 24 quarterly instalments.
• Electricity bills carry a Rs3.23 per unit surcharge that will service the loan, taking total repayments to about Rs1.938 trillion including up to Rs663 billion in interest.
• Funds will refinance roughly Rs683 billion of Power Holding Limited debt and clear arrears owed to independent power producers.
• The loan is extended directly to CPPA-G without a sovereign guarantee, secured by sector receivables and aligned with IMF-linked reforms.
• Officials target a sharp reduction in the circular-debt stock from about Rs1.66 trillion, with some reports placing the final facility nearer Rs1.225 trillion after recent settlements.