KARACHI: Mari Energies Limited shareholders approved the aforementioned financial package for funding the GEM Project of Mari Energies Limited, which is a joint venture for both greenhouse gas reduction and energy generation located close to Sachal Gas Processing Complex in Pakistan.
Mari Energies has proposed two special resolutions for approval via Section 199 of the Companies Act, 2017 in the Pakistan Stock Exchange, making it the biggest-ever green energy project for the company.
Two Pillars Underpin the Mari Energies GEM Project Financial Structure
The Mari Energies GEM project obtains its financial power through two distinct but complimentary sources of finance: one providing liquidity immediately to GHG Emissions Mitigation Limited, and the other ensuring long-term debt financing for the project.
The first pillar provides an equity infusion to GEM amounting to PKR 2.44 billion. Mari Energies manages this through the subscription of 244.8 million rights shares offered by GEM for a nominal value of PKR 10 per share, thus providing instant capital for deployment in projects, bypassing debt disbursements.
The second pillar initiates an exhaustive sponsorship support agreement in favor of Habib Bank Limited along with a group of co-financiers. This agreement provides support to the Letter of Credit facilities up to USD 38 million and debt facilities up to PKR 14.4 billion. In totality, considering the exchange rates prevalent today, debt facilities under the Mari Energies GEM Project have come to nearly PKR 25 billion.
Sponsorship by Mari Energies would be entirely proportional to its equity share, with sponsorship funds being used for any over-budget expenditure, minimum equity funding, and debt service reserve account provisions.
Emission to Energy: Turning a Liability into a Resource at Sachal Complex
The GEM project by Mari Energies addresses a very pertinent issue faced by Pakistan’s energy industry, i.e., greenhouse gas emissions in gas processing, which is currently a liability for the energy industry.
In doing so, the emissions are harnessed to create sustainable energy generation, thus allowing Mari Energies to convert environmental compliance into money. For this purpose, the Sachal Gas Processing Complex is the best place to do so owing to the facilities available there.
This is because the dual purpose of being able to cut down on emissions of carbon as well as make money at the same time makes the project by Mari Energies GEM one that Pakistan needs.
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Matching Mari Energies with International ESG Standards
In light of the magnitude and organization of the GEM Project by Mari Energies, it is evident that the company has made the business decision to embrace the ES&G requirements expected from a listed energy firm.
Pressure from both within and outside the country on energy companies to decrease their carbon footprint has escalated significantly between 2025 and 2026. Rather than just paying lip service to the issue, Mari Energies decided to take concrete action by investing PKR 25 billion to create an energy asset out of its emission liabilities.
Regarding MARI on Pakistan Stock Exchange, the resolution by the shareholders on Thursday clears an important hurdle and indicates that the project by Mari Energies GEM Project has the necessary financial muscle to progress from the planning stage to the execution phase without any hindrance in terms of financing.
