The Pakistan Credit Rating Agency Limited
05-Apr-24
Analyst
Hashim Yazdani
hashim.yazdani@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Rating Modifiers | Apr-23
- Methodology | Debt Instrument Rating | Dec-23
- Methodology | Independent Power Producer Rating | Jul-23
Related Research
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PACRA Withdraws the Rating of The Hub Power Company Limited | Sukuk | Redeemed
| Issuer | The Hub Power Company Limited |
| Instrument | Sukuk |
| Amount | PKR 5000 mln |
| Issuance Date | 19-Mar-20 |
| Tenor | 4 Years |
| Redemption Date | 18-Mar-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (05-Apr-24 ) |
Previous (12-Oct-23 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | AA+ |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
HUBCO issued a Rated, Secured, Privately Placed, Islamic Certificate amounting to PKR 5bln, on March 19, 2020, for optimization of the balance sheet. The Privately Placed Long Term Sukuk, having a tenor of 4 years, carried a profit rate of 1 Year Kibor + 190bps. The instrument was redeemed on 18th March 2024 after the final interest and principal payment.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of The Hub Power Company Limited | Sukuk.
About
the Entity
HUBCO, a listed company, was incorporated in 1991. Mega Conglomerate being the largest shareholder holds 19.48% of the total ownership. Other institutions include Fauji Foundation (8.5%), Allied bank (2.73%) and National Bank (2.22%). The remaining shareholding is held by various Financial Institutions, Insurance Companies, Joint Stock Companies, Modaraba/Mutual Fund & Leasing Companies and general public. Overall control of the company vests in a nine-member board of directors (BoD) including the CEO. The BoD comprises of 3 nominees from Mega Conglomerate, 1 nominee each of NIT, Fauji Foundation and Government of Balochistan along with 2 Independent directors. Mr. Kamran Kamal is the CEO of the company. He has been associated with the company for about seven years. He is accompanied by a team of qualified individuals.