Analyst
Muhammad Atif Chaudhry
Atif.Chaudhry@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
PACRA withdraws the Rating of K-Electric | PPSTS-7 | PKR 5bln | Aug-22
Issuer | K-Electric Limited |
Instrument | PPSTS-7 |
Amount | PKR 5000 mln |
Issuance Date | 10-Aug-22 |
Tenor | 0.5 Years |
Redemption Date | 10-Feb-23 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (01-Mar-23 ) |
Previous (31-Aug-22 ) |
|
Action | Redeem | Initial |
Long Term | - | AA |
Short Term | - | A1+ |
Outlook | Stable | |
Rating Watch | - | - |
K-Electric Limited (the "Company") issued an unsecured, privately placed, short-term sukuk K-Electric | PPSTS-7 | PKR 5bln | Aug-22 ("PPSTS-7") of PKR 5,000mln on 10-Aug-22. The purpose of the instrument was to finance the Company's working capital requirement. The tenor of the instrument was 6 months and carried a profit rate of 6MK+95bps. 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 Feb 10, 2022. Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric | PPSTS-7 | PKR 5bln | Aug-22.
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About
the Entity
K-Electric, a vertically-integrated power utility, has been in operations for more than a century.Total installed capacity of K-Electric is 2,817MW, having an arrangement under a power purchase agreement for 1,650+ MW. At the end-jun22, KES Power Limited (KESP) held 66.4% share in KElectric, while Government of Pakistan owned 24.4%. KES Power has entered into a share purchase agreement with Shanghai Electric Power Company Limited (SEP) for sale of up to 66.4% shares of K-Electric. The transaction is in process and will close once customary closing conditions and requisite regulatory approvals are obtained. K-Electric has ten member board. Mr.Moonis Alvi, CEO is associated with the company since 2008. He is supported by an experienced team.