The Bank of Punjab (BOP) has led the structuring of a PKR 17 billion syndicated Islamic project finance facility for Novacare Hospitals (Private) Limited to support the development of a planned 250-bed tertiary care hospital and a feeder clinic in Islamabad. The financial close was marked at a signing ceremony attended by the project’s sponsors, hospital management and participating financial institutions. The transaction brings together multiple financial institutions to provide long-term funding for a major healthcare infrastructure project, highlighting the role of Islamic finance in supporting capital-intensive developments beyond conventional commercial activities. The total estimated project cost is approximately PKR 28.5 billion, with the sponsors contributing PKR 11.5 billion in equity alongside the syndicated financing. BOP has committed PKR 5.8 billion to the facility and is serving as the intercreditor agent, as well as a joint mandated lead advisor and arranger. The bank said the transaction reflects its commitment to financing projects that contribute to essential infrastructure and deliver economic and social benefits. For Novacare, reaching financial close represents an important step towards construction and commissioning of the planned hospital, although the facility’s opening date and detailed construction timeline were not specified in the announcement. <Cite refs={[“turn963450search0″,”turn963450search11”]}/>
United Bank Limited (UBL) and Habib Bank Limited (HBL) are serving as joint mandated lead advisors and arrangers alongside BOP, while Pak China Investment Company Limited has joined the transaction as co-arranger. PAIR Investment Company Limited and Pak Libya Holding Company (Private) Limited are participating as syndicate financiers. The involvement of these institutions distributes the financing across several participants rather than relying on a single lender to fund the entire facility. In a syndicated financing arrangement, participating institutions agree to provide portions of a larger financing package under a coordinated structure, allowing projects requiring substantial capital to access funding from multiple sources. The Islamic structure is particularly relevant for investors and institutions seeking financing arrangements that comply with Islamic finance principles. The announcement did not disclose the detailed financing structure, repayment schedule, pricing, maturity or the allocation of funding among all participating institutions. It also did not specify whether the facility includes separate tranches for construction and other project requirements. BOP President and Chief Executive Officer Zafar Masud said that bringing the project to financial close required commitment from the sponsors and collaboration among the participating institutions. He expressed hope that the financing framework could make it easier for future healthcare projects in Pakistan to access long-term capital. The transaction therefore highlights both the size of the hospital project and the coordination required to arrange funding for specialised infrastructure.
Novacare Hospital Islamabad is planned as a tertiary care facility intended to provide specialised medical services, supported by clinical standards, technology and patient-focused care. The project also includes a feeder clinic, which is expected to form part of its wider healthcare offering. Novacare has described itself as an international affiliate of Imperial College Healthcare NHS Trust in the United Kingdom, providing a connection to the knowledge and expertise of a major UK healthcare organisation. The planned hospital is expected to add capacity to Islamabad’s healthcare infrastructure, although its eventual services, operating capacity and patient volumes will depend on the completed facility and its commissioning. Financing is a central requirement for projects of this scale because hospitals need substantial capital for construction, medical equipment, clinical systems and supporting infrastructure before they begin treating patients. Long-term project finance can help match funding arrangements with the extended development period of such facilities. The financial close does not mean the hospital is already operational; construction and commissioning remain important steps before it can begin providing services. BOP has said it looks forward to supporting Novacare through these stages. The hospital’s sponsors and management will need to progress the development while meeting applicable construction, safety, healthcare and regulatory requirements.
The transaction also comes as Pakistan’s financial sector explores ways to direct capital towards infrastructure projects that require significant upfront investment and extended development periods. Islamic finance can provide an alternative structure for mobilising funds, particularly when financial institutions and sponsors seek arrangements aligned with Shariah principles. The PKR 17 billion facility represents a substantial financing commitment towards a project with an estimated total cost of PKR 28.5 billion, while the sponsors’ equity contribution accounts for a significant share of the overall investment. The announcement identifies the facility as the first greenfield hospital project in Pakistan financed through a syndicated Islamic project finance facility. If the structure provides a workable model for future healthcare developments, it could offer lenders and project sponsors a reference point for arranging financing for other capital-intensive facilities. However, the long-term significance of the transaction will depend on the project’s execution, the hospital’s eventual operations and whether similar financing structures are adopted for other developments. No additional hospital projects using the same structure were announced alongside the agreement. For now, the financial close brings Novacare Hospital Islamabad closer to its development goals and demonstrates how several Pakistani financial institutions can work together to mobilise long-term capital for healthcare infrastructure.
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