Analyst
Timnat Thomas
timnat.thomas@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
Dawood Hercules Corporation Limited Redeems | Sukuk II | PACRA Withdraws Instrument Rating
Issuer | Dawood Hercules Corporation Limited |
Instrument | Sukuk-II |
Amount | PKR 6000 mln |
Issuance Date | 01-Mar-19 |
Tenor | 2 Years |
Redemption Date | 01-Mar-21 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (01-Apr-21 ) |
Previous (26-Jun-20 ) |
|
Action | Redeem | Maintain |
Long Term | - | AA |
Short Term | - | - |
Outlook | Stable | |
Rating Watch | - | - |
Dawood Hercules Corporation Limited ("DH Corp" or "the Company") has issued secured, privately placed Islamic Certificates "Sukuk" amounting to PKR 6bln on 1st March, 2019. The purpose of the issue was to consolidate and re-profile the existing debt of the Company and to utilize the remaining proceeds into the business operations. The principal was to be repaid in 8 step up semi-annual payments in arrears and profit repayment was made quarterly in arrears on the outstanding principal amount at a floating rate of 3M-KIBOR plus 100bps. The Sukuk was to mature in five years from the date of issue in Feb' 2023. But later, on 18th December, 2020, the Board has approved the early repayment of the Sukuk. Keeping in view with the decision, the payment of outstanding principal of Sukuk amounting to PKR 4.2bln and mark-up amounting to PKR 85.9mln was made to the certificate holders of the Sukuk on 1st March, 2021.
Subsequent to the early repayment the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Dawood Hercules Corporation Limited | Sukuk II.
About
the Entity
Dawood Hercules Corporation Limited's ("DH Corp" or "the Company") is a public listed company incorporated in 1968. The principal activity of the Company is to manage investments including its subsidiary and associated companies. Dawood Group (Dawood Family and Associates) holds 34% stake in DH Corp through its’ corporate entities (20%) and individuals (14%). Other related foreign companies hold 54% shareholding in DH Corp, 9% is held by corporate and financial institutions whereas 3% is held by general public. The Company's BoD is chaired by Mr. Hussain Dawood, the patriarch of Dawood family. Mr. Inam-Ur-Rehman is serving as the Company's CEO since Dec-16.