Novatex 2023

pending

Novatex Ltd (“Novatex” or the “Company” or the “Borrower”) is member of the Gani & Tayub Group (“G&T Group”) of companies, which is one of the large manufacturing and export groups in Pakistan with over seven decades of experience, and a presence in various sectors including textiles, polyester filament yarn, pharma/food packaging, health care, and energy generation. Novatex started with the production of PET resin in 2002, PET preforms in 2006, and BoPET films in 2012 (see: https://www.gatronova.com). Novatex has two manufacturing facilities in Pakistan. The main, larger facility, including the BoPET film unit, is established on land in a designated industrial zone (Landhi Industrial Area) at Karachi, measuring 377,000 m2 (93.15 acres). The smaller unit is in a designated industrial area near Faisalabad city on a 85,600 m2 (21.15 acres). Pakistan’s foreign exchange reserves are constrained and private companies, in the recent past, have faced unprecedented challenges in securing US$-denominated letters of credit (LCs) to import essential raw materials and equipment for ongoing operations.  IFC is considering a senior A-loan of up to US$20mn (the “IFC Loan”) to Novatex to import raw materials, machinery, and related services for their operations (the Project).IFC’s Upstream Advisory is engaged with Novatex (NOVATEX TIRES, #605223, https://disclosures.ifc.org/project-detail/AS/605223/novatex-tire-manufacturing ) on the design, construction, and operation of a greenfield tire manufacturing plant in Karachi, Pakistan to produce high-quality tires suitable for automotive Original Equipment Manufacturers (OEMs) in Pakistan and for export markets as well. For the pre-development stages of the project, Novatex has partnered with IFC through a Collaboration Agreement executed in March 2021 to evaluate the preliminary marketing, technical, and economic aspects of the proposed project.