The Bank of Punjab Leads Structuring of PKR 17 Billion Islamic Project Finance Facility for Novacare Hospital Islamabad

The Bank of Punjab (BOP) has led the structuring of a PKR 17 billion syndicated Islamic project-finance facility for Novacare Hospitals (Private) Limited, marking a significant financing milestone for the company’s planned tertiary-care hospital in Islamabad.

The financial close was marked at a signing ceremony attended by the project’s sponsors, management and participating financial institutions. The transaction is intended to support the development of Novacare Hospital Islamabad and expand the role of Islamic finance in funding major healthcare infrastructure projects in Pakistan.

How the Financing Facility Is Structured

The Bank of Punjab acted as the intercreditor agent and joint mandated lead adviser and arranger for the PKR 17 billion facility.

United Bank Limited (UBL) and Habib Bank Limited (HBL) also served as joint mandated lead advisers and arrangers, while Pak China Investment Company Limited participated as co-arranger.

PAIR Investment Company Limited and PakLibya Holding Company (Private) Limited were among the participating syndicate financiers. Haidermota & Co. served as legal counsel.

A syndicated financing arrangement brings multiple financial institutions together to fund a project. Islamic project finance structures are designed around Shariah-compliant financing arrangements rather than conventional interest-based lending.

The PKR 17 billion facility is the financing amount reported for this transaction. It should not be confused with the hospital’s total development cost or the full amount of capital invested in the project.

A 250-Bed Tertiary-Care Hospital in Islamabad

Novacare Hospital is being developed in DHA Phase V, Islamabad, as a tertiary-care facility intended to provide complex medical services across multiple specialties.

According to the project’s official website, Phase 1 is planned to include 243 inpatient beds, including 68 critical-care beds, with a longer-term plan to expand capacity to 450 inpatient beds in Phase 2.

The planned clinical programme includes cardiology, neurosciences, oncology, orthopaedics, women’s and children’s health, emergency medicine, critical care, diagnostic services and other specialist disciplines.

Novacare has also described plans for a broader healthcare model combining hospital services with feeder clinics and technology-enabled care.

Understanding the Project’s Investment Figures

The financing announcement and the hospital’s project information refer to different financial figures.

The syndicated Islamic financing facility is valued at PKR 17 billion. The Bank of Punjab’s announcement has also described the broader project as a PKR 28.5 billion development, while Novacare’s website lists PKR 35 billion in planned Phase 1 investment across equity and debt capital.

These figures should be understood in their respective contexts. The financing facility is not necessarily the entire project budget, and the published figures may reflect different scopes or stages of the project. A detailed reconciliation of the amounts has not been established in the information reviewed for this report.

Why Islamic Project Finance Matters for Healthcare

Large hospitals require substantial upfront capital for construction, specialist equipment, clinical infrastructure and supporting facilities. Project finance can help mobilise funding from multiple institutions for developments that would be difficult to fund through a single lender alone.

Islamic financing structures provide an alternative framework for eligible projects seeking Shariah-compliant funding. The Novacare transaction illustrates how Pakistani financial institutions can participate collectively in financing healthcare infrastructure.

The announcement does not, by itself, establish that the facility will lower treatment costs or guarantee improved healthcare access. Those outcomes will depend on the hospital’s eventual services, operating model, pricing and ability to serve patients.

Novacare’s International Healthcare Affiliation

Novacare says it is an International Affiliate of Imperial College Healthcare NHS Trust in the United Kingdom. The affiliation provides access to knowledge and expertise intended to support the development of clinical standards and practices.

The affiliation should not be interpreted as meaning the hospital is operated by the UK trust or that every service will automatically meet a particular international accreditation standard. Actual clinical outcomes and service quality will depend on implementation, staffing, governance and regulatory oversight.

What Happens Next?

The financing close marks a step forward for the hospital project, but construction, commissioning, recruitment and operational readiness remain important milestones before patients can receive services.

Novacare’s project website has described the hospital as opening in 2026. The exact opening date and the commencement of individual clinical services should be confirmed through the company’s latest official updates.

TEKZARO Takeaway: The Bank of Punjab has led a PKR 17 billion syndicated Islamic financing facility for Novacare Hospital Islamabad, alongside other participating financial institutions. The transaction represents a major funding step for the planned tertiary-care hospital, while the project’s final cost, commissioning timeline and eventual impact on healthcare access remain important details to follow.