The Bank of Punjab (BOP) has led the financial close of a Rs17 billion syndicated Islamic project finance facility for Novacare Hospitals (Private) Limited, supporting the development of a 250-bed tertiary care hospital and a feeder clinic in Islamabad. The financing agreement was marked at a signing ceremony attended by the project’s sponsors, management and participating financial institutions. The transaction represents a major financing arrangement for healthcare infrastructure in Pakistan and highlights the role of Islamic finance in supporting large-scale projects that require long-term capital. The proposed hospital is expected to expand access to specialised medical services in the federal capital.
Novacare Hospitals is affiliated with Imperial College Healthcare NHS Trust, a healthcare organization associated with Imperial College London in the United Kingdom. According to the announcement, it is Pakistan’s first and only hospital affiliated with the trust. The project’s total estimated cost stands at approximately Rs28.5 billion, with the sponsors contributing Rs11.5 billion in equity. The Rs17 billion financing facility will support the development of the hospital and its associated feeder clinic, combining sponsor investment with funding arranged through participating financial institutions.
The transaction has also been described as Pakistan’s first greenfield hospital financed through a syndicated Islamic project finance facility. Greenfield financing supports a project developed from the ground up rather than the acquisition or refinancing of an existing facility. The structure provides a financing framework for a new healthcare development and demonstrates how Islamic financial arrangements can be used to mobilise capital for infrastructure projects. Such financing can be relevant to sectors where construction costs are substantial and funding needs extend across several stages of development.
The Bank of Punjab arranged and structured the facility, serving as Intercreditor Agent and Joint Mandated Lead Advisor and Arranger. United Bank Limited and Habib Bank Limited also acted as Joint Mandated Lead Advisors and Arrangers, while Pak China Investment Company Limited participated as Co-Arranger. PAIR Investment Company Limited and Pak Libya Holding Company Limited joined the syndicate as financiers. The participation of several financial institutions reflects a coordinated approach to arranging the funding required for a project of this scale, with the financing responsibilities distributed among participating institutions.
BOP has committed Rs5.8 billion to the facility, reflecting its participation in the project’s overall financing structure. The bank’s role in arranging the syndicated facility places it at the centre of a transaction designed to support healthcare infrastructure through Islamic financing. Syndicated financing allows multiple financial institutions to participate in a single funding arrangement, helping mobilise capital for projects that may require more financing than one institution would provide independently. In this case, the arrangement brings together several institutions to support the development of a major hospital project in Islamabad.
Speaking at the signing ceremony, Zafar Masud, President and Chief Executive Officer of the Bank of Punjab, highlighted the importance of healthcare investment beyond the financial aspects of the transaction. He said Novacare represented an investment in the care, dignity and wellbeing of the people the hospital would serve. His remarks emphasised the social significance of healthcare infrastructure and the role that financial institutions can play in enabling projects intended to expand medical services.
The project’s overall cost of approximately Rs28.5 billion reflects the scale of investment planned for the hospital and feeder clinic. With Rs11.5 billion coming from sponsor equity and a Rs17 billion syndicated Islamic financing facility, the project combines direct investment with structured funding from participating financial institutions. The development is intended to establish a tertiary care facility in Islamabad, although the announcement did not provide a completion date or details about when hospital services are expected to begin.
The financing arrangement highlights the potential contribution of Islamic banking and capital mobilisation to Pakistan’s healthcare sector. By arranging long-term funding for a new hospital, the Bank of Punjab and its partner institutions are supporting an infrastructure project that requires substantial investment. The transaction also provides an example of how syndicated Islamic project finance can be applied beyond traditional commercial sectors, creating opportunities for financial institutions to participate in healthcare development while supporting investment in essential services.
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