Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA withdraws the Rating of K-Electric | PPSTS-3 | Feb-22
Issuer | K-Electric Limited |
Instrument | PPSTS-3 |
Amount | PKR 4500 mln |
Issuance Date | 02-Feb-22 |
Tenor | 0.6 Years |
Redemption Date | 02-Aug-22 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (28-Sep-22 ) |
Previous (08-Apr-22 ) |
|
Action | Redeem | Initial |
Long Term | - | AA |
Short Term | - | A1+ |
Outlook | Stable | |
Rating Watch | - | - |
K-Electric Limited (the "Company") issued an unsecured, privately placed, short-term sukuk (PPSTS-3) of PKR 4,500mln on February 02, 2022. The purpose of the instrument was to finance the Company's working capital requirement. The tenor of the instrument was 6 months and carried a profit rate of 6MK+85bps. The Company has paid in full, all markup and outstanding principal amount in a timely manner. The PPSTS-3 has been redeemed on August 02, 2022.
Subsequent to the redemption of the PPSTS-3, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric Limited | PPSTS-3.
About
the Entity
K-Electric, a vertically-integrated power utility, has been in operations for more than a century. Total installed capacity of K-Electric is 2,267MW, having an arrangement with National Grids for 1,400 MW. At end-jun21, KES Power Limited (KESP) held 66.4% share in K-Electric, while Government of Pakistan owned 24.4%. KES Power is a consortium of Al-Jomaih Group of KSA, NIG of Kuwait and IGCF, a private equity fund formerly managed by Abraaj comprising several Middle East institutional investors. KES Power has entered into a share purchase agreement with Shanghai Electric Power Company Limited (SEP) for sale of up to 66.4% shares of K-Electric against a consideration of US$ 1.77bln. The transaction is in process and will close once customary closing conditions and requisite regulatory approvals are obtained. K-Electric has thirteen member board. Mr. Moonis Alvi, CEO is associated with the company since 2008. He is supported by an experienced team.