The Pakistan Credit Rating Agency Limited
28-Oct-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jun-22
- Methodology | Rating Modifiers | Jun-22
- Methodology | Independent Power Producer Rating | Jun-22
Related Research
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PACRA Withdraws the Rating of Lucky Electric Power Company Limited | PPSTS | Apr-22
| Issuer | Lucky Electric Power Company Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 7000 mln |
| Issuance Date | 14-Apr-22 |
| Tenor | 0.6 Years |
| Redemption Date | 14-Oct-22 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (28-Oct-22 ) |
Previous (18-May-22 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
Lucky Electric Power Company Limited (the "Company" or "LEPCL") issued an unsecured, privately placed, short-term sukuk Lucky Electric Power Company Limited | PPSTS | Apr-22 (or "PPSTS") of PKR 7,000mln on April 14, 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+120bps. The Company has paid in full, all markup and outstanding principal amount in a timely manner. The PPSTS has been redeemed on October 14, 2022.
Subsequent to the redemption of the PPSTS, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Lucky Electric Power Company Limited | PPSTS | Apr-22.
About
the Entity
Lucky Electric Power Company Limited, incorporated in Pakistan on June 13, 2014 as public unlisted company at Port Qasim, Karachi, Sindh. The capital structure comprises 25% equity and debt financing constitutes 75% of the initial estimated project cost; ~USD 883mln, financed from local and foreign financial institutions. Local currency facilities have been obtained from multiple consortium of banks aggregating to PKR 65.95bln and have a 10 year tenure starting June 2022 and to be paid in 40 quarterly installments. The foreign facility is USD 210mln. Out of which USD 20mln will be paid quarterly and USD 190mln, will be paid semi-annually. Lucky Cement Limited owns 100% shareholding of Lucky Electric Power Company Limited. Lucky Cement Limited stands as the flagship company of Yunus Brothers Group. The Company’s board comprises of seven directors, including CEO, all the board members represent Lucky Cement. Mr. Muhammad Ali Tabba, the Chairman, has been associated with the Group in different capacities for nearly three decades and is currently chairing the Board with his visionary leadership and vast experience.