The Pakistan Credit Rating Agency Limited
25-Jan-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA withdraws The Rating of Fatima Fertilizer Company Limited | Sukuk
| Issuer | Fatima Fertilizer Company Limited |
| Instrument | Sukuk-I |
| Amount | PKR 10500 mln |
| Issuance Date | 28-Nov-16 |
| Tenor | 5 Years |
| Redemption Date | 28-Nov-21 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (25-Jan-22 ) |
Previous (05-Aug-21 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | AA- |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
Fatima Fertilizer Company Limited (FFCL) issued Listed Rated & Secured Sukuk of PKR10,500mln in November 28, 2016 for a tenor of 5 years and carried a profit rate of 6 M KIBOR +1.10%. FFCL’s Sukuk was secured against First pari-passu charge with 25% margin on all present and future fixed assets of FFCL.The company has captured the highest market share in NP & CAN fertilizers and covers the overall 24% market share in term of sales. Furthermore company has paid all ten markup installments and outstanding principal amounts in timely manner. The sukuk was fully redeemed at the end of 5 year tenor in November 28, 2021.
Subsequent to the completion of the redemption process, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Fatima Fertilizer Company Limited | Sukuk.
About
the Entity
Fatima Fertilizer Company Limited ('Fatima' or 'the Company') was incorporated in Dec-03 as a public limited company under the repealed Companies Ordinance, 1984 (now Companies Act. 2017). The Company was listed on the PSX in 2010. The Company is primarily involved in manufacturing and selling variants of fertilizers (Urea, CAN, and NP) and chemicals. The production facilities are all located in Punjab, Pakistan. The has an overall nameplate capacity of 2.57mln MT. During 3QCY21, the Company’s topline stood at PKR ~76.7bln (3QCY20: 46.4bln) up by~50%, indicating an uptick in the prices NP and DAP and the increase in sales
volume. Fatima Group holds 45% of the total shares through associated companies (23%) and individuals (22%), while Arif Habib Group holds 34% through associated companies (16%) and individuals (18%). The Company's Board is Chaired by Mr. Arif Habib. Mr. Fawad Ahmed Mukhtar heads the Company as the CEO and is assisted by a team of experienced professionals.