The Pakistan Credit Rating Agency Limited
27-Jun-23
Analyst
Muhammad Atif Chaudhry
Atif.Chaudhry@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Rating | Jun-22
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jun-22
- Methodology | Rating Modifiers | Jun-22
Related Research
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PACRA withdraws the Rating of Pak Elektron Limited | PP Sukuk | Redeemed
| Issuer | Pak Elektron Limited |
| Instrument | Sukuk |
| Amount | PKR 1500 mln |
| Issuance Date | 15-Nov-21 |
| Tenor | 1.3 Years |
| Redemption Date | 15-Feb-23 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (27-Jun-23 ) |
Previous (28-Dec-22 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | A+ |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
Pak Elektron Limited issued a Rated, Secured & Privately Placed Sukuk of PKR 1,500mln on 15th November 2021 to finance the working capital requirements of the Company. The tenor of the instrument was fifteen months (1.25 years). The profit was paid quarterly in arrears at the rate of 3MK + 1.3% on the outstanding amount. The Company has paid in lumpsum the outstanding principal amount at maturity. The Sukuk has been redeemed on 15th Feb, 2023.
Subsequent to the redemption of the Sukuk, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Pak Elektron Limited | PP Sukuk.
About
the Entity
PEL, incorporated in 1956, is a listed public limited company. It is principally engaged in the manufacturing and sale of electrical capital goods and domestic appliances. Saigol Group owns shareholding in the Company (29.36%) through family members. Other interests of the group include power, textile and real estate. Mr. Naseem Saigol is the Chairman of the seven-members Board. Saigol family has prominent presence on Board. Mr. Murad Saigol, CEO, monitors all the strategic and operational affairs of the Company. He is supported by an experienced management team.