The Pakistan Credit Rating Agency Limited
14-Feb-20
Analyst
Raniya Tanawar
raniya.tanawar@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Withdraws Debt Instrument Rating of Pakistan Mobile Communications Limited | Sukuk | PKR 6,900mln
| Rating Type | Debt Instrument | |
|
Current (14-Feb-20 ) |
Previous (08-Nov-19 ) |
|
| Action | Withdraw | Maintain |
| Long Term | - | AA |
| Short Term | - | - |
| Outlook | - | Positive |
| Rating Watch | - | - |
Pakistan Mobile Communications Limited (PMCL) had issued a Sukuk of PKR 6,900mln in two tranches; PKR 3,000mln in Dec'14 and PKR 3,900mln in Sep'15. The Sukuk was assigned a 'AA' rating by the Pakistan Credit Rating Agency (PACRA), and has been fully redeemed in Dec'19. Subsequent to the completion of the redemption process, PACRA withdraws the rating of the Sukuk with immediate effect.
About
the Entity
Pakistan Mobile Communications Limited (PMCL) – brand name ‘Jazz’ commenced its operations in August 1994. International Wireless Communications Pakistan Limited – which is majority-owned by one of the world’s leading telecom group – VEON (formerly VimpelCom), owns ~85% shareholding of the company. Rest ~15% lies with Abu Dhabi Group through the share swap transaction of PMCL-Warid merger. VEON is among the largest telecom operators in the world in terms of subscribers. VEON provides essential communications and digital services to 212 million customers in ten of the world’s most dynamic countries. The company's seven-member Board of Directors (BoD) is mainly composed of representatives from VEON. His Highness Sheikh Nahayan Mabarak Al Nahayan chairs the board. Mr. Aamir Ibrahim, the CEO, has over two decades of experience in the local and international markets.
About
the Instrument
PMCL had issued a Sukuk of PKR 6,900mln in two parts; PKR 3,000mln on Dec 22, 2014, and PKR 3,900mln on Sep 3, 2015. The profit was payable quarterly at three-month KIBOR plus 35bps. The first principal payment was made on Mar 22, 2017. The Security Structure of the Sukuk included 1st pari passu floating charge on all present and future assets, 1st pari passu floating charge on future and present collections of the company and a partial credit guarantee of PKR 966mln by GuarantCo. The instrument has been fully redeemed in Dec'19.