Bank of Punjab Leads PKR 17 Billion Islamic Finance Deal for Novacare Hospital
The Bank of Punjab has closed a PKR 17 billion Islamic finance facility for Novacare Hospitals, funding a 250-bed tertiary care hospital and feeder clinic in Islamabad in what is being billed as a first for Pakistan’s healthcare sector.
The financial close was marked at a signing ceremony bringing together the project’s sponsors, management and participating financial institutions. With sponsors contributing PKR 11.5 billion in equity, the total project cost stands at about PKR 28.5 billion.
PKR 17 billion Islamic finance: a first for hospitals
The transaction is Pakistan’s first greenfield hospital financed under a syndicated Islamic project finance facility. That matters because long-term, Sharia-compliant funding for healthcare infrastructure has been scarce in Pakistan, forcing most private hospitals to rely on equity or conventional borrowing.
A syndicated facility spreads the risk across several lenders. Here, the Bank of Punjab structured the deal as Intercreditor Agent and acted as Joint Mandated Lead Advisor and Arranger alongside United Bank Limited and Habib Bank Limited. Pak China Investment Company came in as Co-Arranger, while PAIR Investment Company and Pak Libya Holding Company joined as syndicate financiers. The Bank of Punjab itself committed PKR 5.8 billion.
Novacare Hospitals is Pakistan’s first and only hospital affiliated with Imperial College Healthcare NHS Trust, a link its management presents as a guarantee of international clinical standards. Its chief executive, Hans Kedzierski, thanked the participating institutions and said Novacare’s vision was to deliver international-standard healthcare in Pakistan with patient care and empathy at its core.
“More than a financing transaction”
Bank of Punjab President and CEO Zafar Masud framed the deal in human terms. “Healthcare touches every one of us. At some point, we have needed care for ourselves or someone we love, and we understand the difference that a good hospital and a skilled doctor can make,” he said. “That is why Novacare has always meant more to us than a financing transaction. It is an investment in the care, dignity and wellbeing of the people this hospital will serve.”
On the financing itself, he said: “Bringing this project to financial close required conviction from the sponsors and close collaboration among all six participating institutions. Together, we have established a financing framework that we hope will make it easier for future healthcare projects in Pakistan to access long-term capital. If the next hospital finds its path to financing easier because of what we have achieved here, that will be a lasting contribution.”
Masud congratulated Novacare’s sponsors, board and management, and acknowledged the advisers, legal counsel and the bank’s own investment banking and project finance teams.
“Financial close is an important milestone, but the real achievement will be the day the hospital opens its doors to patients,” he added. “We look forward to supporting Novacare through construction and commissioning, and to seeing this vision become a place of healing and hope.”
Why Islamabad needs the beds
Islamabad’s public hospitals run near capacity for much of the year, and patients from KP, northern Punjab and Azad Kashmir routinely travel to the capital for specialist care.
The Islamic structuring is the other half of the story. Pakistan’s Islamic banking industry has grown into one of the world’s largest, and regulators want it to move beyond consumer and trade finance into long-gestation infrastructure. A hospital deal of this size gives other developers a template: if a greenfield hospital can be financed this way, so can schools, water projects and industrial estates.
The test, as Masud himself noted, comes at opening day. Financial close is paperwork; a working hospital is the achievement.
FAQ
How much is the Novacare financing deal worth?
The syndicated Islamic facility is worth PKR 17 billion. Sponsors added PKR 11.5 billion in equity, taking the total project cost to about PKR 28.5 billion.
Which banks are involved?
The Bank of Punjab structured the deal as Intercreditor Agent and Joint Mandated Lead Advisor and Arranger with UBL and HBL. Pak China Investment Company is Co-Arranger; PAIR Investment and Pak Libya Holding are syndicate financiers.
What will the money build?
A 250-bed tertiary care hospital and a feeder clinic in Islamabad, run by Novacare Hospitals, which is affiliated with Imperial College Healthcare NHS Trust.
Why is the deal significant?
It is Pakistan’s first greenfield hospital financed through a syndicated Islamic project finance facility, setting a precedent for long-term Sharia-compliant funding of healthcare infrastructure.
