Analyst
Muhammad Azmat Shaheen
azmat.shaheen@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Withdraws Rating of Jahangir Siddiqui & Co. Ltd. | TFC X | Jul-17 | Redeemed
Issuer | Jahangir Siddiqui & Co. Ltd. |
Instrument | |
Amount | PKR 1500 mln |
Issuance Date | 18-Jul-17 |
Tenor | 6 Years |
Redemption Date | 18-Jul-23 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (04-Aug-23 ) |
Previous (05-Aug-22 ) |
|
Action | Redeem | Maintain |
Long Term | - | AA+ |
Short Term | - | - |
Outlook | Stable | |
Rating Watch | - | - |
In Jul'17, Jahangir Siddiqui & Co. Ltd. ('JSCL' or the "Company') issued its TFC X with a tenure of five years (deferred to six years due to Covid). On 18th Jul'23 the TFC matured and JSCL made final markup and principal payments to its investors and thus the Company redeemed in full the entire principal amount of PKR 1,500mln along with the markup profit payments.
Subsequent to the redemption of the Term Finance Certificate, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Jahangir Siddiqui & Co. Ltd. | TFC X | Jul-17.
About
the Entity
JSCL, a successor to the brokerage business started in the early seventies by Mr. Jahangir Siddiqui, was established in 1991 and is listed on the Pakistan Stock Exchange. JSCL, JS Group’s flagship holding company, has a portfolio of investments categorized into a) core investments (subsidiaries), b) strategic investments and c) trading investments. Investments in the financial segment dominate the portfolio with a significant concentration in the banking and insurance sectors. Other investments are in the energy, petroleum, and infrastructure sectors. Justice (R) Agha Rafiq Ahmed Khan is Chairman of the BoD, while, Mr. Asad Nasir heads the Company as CEO.
About
the Instrument
The Company issued Over-The-Counter Listed, Term Finance Certificates (TFCs) of PKR 1,500mln. The proceeds were utilized for the expansion of business and other on-going operations of JSCL. The instrument carried a profit rate of 6MK + 140bps with a tenor of five (5) years (extended to 6 years due to deferment). The Company had a right to exercise the call-option before the maturity date.