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The Pakistan Credit Rating Agency Limited
Press Release

Date
30-Sep-21

Analyst
Timnat Thomas
timnat.thomas@pacra.com
+92-42-35869504
www.pacra.com

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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 Rating of Liberty Power Tech Limited | Sukuk | Jan-11

Issuer Liberty Power Tech Limited
Instrument Sukuk-I
Amount PKR 13488 mln
Issuance Date 01-Jan-11
Tenor 10 Years
Redemption Date 01-Jan-21
Outstanding Amount -

Rating Type Debt Instrument
Current
(30-Sep-21 )
Previous
(08-Oct-20 )
Action Redeem Maintain
Long Term - A+
Short Term - -
Outlook Stable
Rating Watch - -

Liberty Power Tech Limited obtained project financing in the form of long term facilities to the tune of PKR 15,137mln on January 1 2011. The facilities include a diminishing Musharaka Sukuk of PKR 13,488mln. The tenor of the Sukuk was 10 years and carried a profit rate of 3-months KIBOR plus 3%. The principal was to be repaid in 40 consecutive quarterly instalments that commenced from March 2011. The final repayment of PKR 701mln of Sukuk has been completed, which is comprised of principal plus interest. The final repayment of the principal of PKR 672mln was made on March 31, 2021. The profit repayment made at redemption on the outstanding principal amount was PKR 28mln. The Sukuk matured on January 1 2021 at the end of the tenor of ten years from the date of issue.
Subsequent to the redemption of the Sukuk, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Liberty Power Tech Limited | Sukuk | Jan-11.

About the Entity
Liberty Power Tech was incorporated in Sep-07 as an Independent Power Producer under the power policy 2002. Liberty Power Tech operates a 200MW power plant based on Residual Fuel Oil near Faisalabad. The electricity generated is being sold to National Transmission and Dispatch Company under the Power Purchase Agreement. The company is majority-owned by Liberty Group (Liberty Mills Limited: 29% & Mukaty Family: 61%) and Soorty Enterprises (10%). Mukaty Family, the key sponsors of Liberty Power Tech, while planning to strengthen its foothold in the power generation segment, are contemplating ventures in unrelated industries. This is likely to strengthen the group’s overall business profile.
Liberty Power Tech has an eight-member board of directors with all members belonging to the Liberty Group, which is principally engaged in the textile sector. Mr Saleem Mukaty, the Chairman, has been associated with the Group in different capacities and is currently chairing the Board with his visionary leadership and vast experience. The management team comprises qualified professionals with sufficient experience in various sectors. The company has a well defined organizational structure with the CEO reporting to the board.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.