Beco Steel Limited has begun finalizing a funding arrangement with its UAE-based sister company, Beco Steel Ferrous and Non-Ferrous Metal Trading LLC, to support its ongoing solar power project.
Beco Steel said the arrangement is intended to ensure uninterrupted project cash flows and timely execution. The company is structuring the funding through an arm’s-length investment and participation agreement, in line with its policy of avoiding conventional interest-based borrowing and maintaining a Sharia-compliant financial structure.
The company said the initiative is expected to secure dedicated project funding, preserve a low-leverage balance sheet, strengthen its Sharia-compliant positioning and deliver long-term value through lower energy costs.
Earlier this month, Beco Steel announced the start of installation of a 5 MW solar power plant, alongside an application for additional sanctioned load from Lahore Electric Supply Company (LESCO). Both the solar installation and load enhancement are expected to be completed within around four months.
Once commissioned, the solar system is expected to generate about 600,000 kWh per month, translating into estimated annual cost savings of approximately PKR 201 mln (USD 0.7 mln), the company said.
Lahore-based Beco Steel Limited is a public limited company incorporated in Pakistan in 1984. The company’s annual melting capacity is 99,400 tons and rerolling capacity is 99,000 tons per annum. The company produces billets, angles, channels, round and square bars.
1 USD / PKR 279.7
