Analyst
Timnat Thomas
timnat.thomas@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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Subsequent to the redemption of the Sukuk, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Liberty Power Tech Limited | Sukuk | Jan-11.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.