The Pakistan Credit Rating Agency Limited
21-Jul-23
Analyst
Muhammad Atif Chaudhry
Atif.Chaudhry@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Rating | Jun-22
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jun-22
- Methodology | Rating Modifiers | Jun-22
Related Research
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA
PACRA withdraws the Rating of Nishat Mills Limited | PPSTS | Redeemed
| Issuer | Nishat Mills Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 7500 mln |
| Issuance Date | 01-Nov-22 |
| Tenor | 0.5 Years |
| Redemption Date | 01-May-23 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (21-Jul-23 ) |
Previous (26-Jan-23 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
Nishat Mills Limited issued a rated, unsecured, privately placed, short-term, Sukuk of PKR 7500mln on 01-Nov-22 to finance the working capital requirement of the Company. The tenor of the instrument was 6 months and carried a profit rate of 3MK+90bps. The instrument has been repaid, hence redeemed. The Company has paid in full, all markup and outstanding principal amount.
The Sukuk has been redeemed on 01-May-23. Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Nishat Mills Limited | PPSTS
About
the Entity
Nishat Mills, established in 1951, is the largest textile composite unit and a leading exporter of textile products in the country. The Company’s majority stake (~51%) is owned by members of Mansha family and Nishat Group companies. Nishat Group maintains a substantial presence in the country's financial sector and a strong foothold in textile, cement, power and hospitality sectors. The Group has lately entered Pakistan's automobile assembly industry through a joint venture with Hyundai motors. The board comprises seven members with two directors representing the sponsoring family including the Chairman. The CEO, Mr. Umer Mansha, has been associated with Nishat Mills since1994 and carries extensive experience in the textile industry. An able management team assists him.