The Pakistan Credit Rating Agency Limited
10-Mar-23
Analyst
Muhammad Atif Chaudhry
Atif.Chaudhry@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jun-22
- Methodology | Rating Modifiers | Jun-22
- Methodology | Independent Power Producer Rating | 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 The Hub Power Company Limited | PPSTS | 4.5bln | Apr-22 | Redeemed
| Issuer | The Hub Power Company Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 4500 mln |
| Issuance Date | 27-Apr-22 |
| Tenor | 0.5 Years |
| Redemption Date | 26-Oct-22 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (10-Mar-23 ) |
Previous (09-Sep-22 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA+ |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
The Hub Power Company Limited issued a rated, Privately Placed Sukuk (PPSTS) of PKR 4,500mln in Apr 2022. The tenor of the instrument was 6 months and carried a profit rate of 6MK+100bps. 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 Oct 26, 2022. Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of The Hub Power Company Limited | PPSTS | 4.5bln | Apr-22.
.
About
the Entity
Hubco, a listed company, was incorporated in 1991. Mega Conglomerate being the largest shareholder holds 19.5% of the total ownership. Other institutions include Fauji Foundation (8.5%), Allied bank (4.4%) and National Bank (3.6%). The remaining shareholding is held by various Financial Institutions, Insurance Companies, Joint Stock Companies, Modaraba/Mutual Fund & Leasing Companies and general public. The company has made sizeable investments in the power sector including power generation, oil & gas exploration, operations & maintenance services and coal mining. 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 and is serving on the current position for almost one year. He is accompanied by a team of qualified individuals heading the respective divisions in the company.