The Pakistan Credit Rating Agency Limited
13-Dec-23
Analyst
Hashim Yazdani
hashim.yazdani@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-23
- Methodology | Independent Power Producer Rating | Jul-23
- Methodology | Rating Modifiers | Apr-23
- Methodology | Debt Instrument Rating | Aug-23
Related Research
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PACRA Withdraws the Rating of The Hub Power Company Limited | PPSTS | PKR 6bln | May-23
| Issuer | The Hub Power Company Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 6000 mln |
| Issuance Date | 18-May-23 |
| Tenor | 0.5 Years |
| Redemption Date | 17-Nov-23 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (13-Dec-23 ) |
Previous (22-Jun-23 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA+ |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
The Hub Power Company Limited issued a rated, Privately Placed Short Term Sukuk (PPSTS) of PKR 6,000mln in May 2023. The tenor of the instrument was 6 months and carried a profit rate of 6MK+30bps. The instrument has been redeemed and the Company has paid in full, all markup and outstanding principal amount.
The Sukuk has been redeemed on Nov 17, 2023. Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of The Hub Power Company Limited | PPSTS | PKR 6bln | May-23.
About
the Entity
HUBCO, a listed company, was incorporated in 1991. Mega Conglomerate being the largest shareholder holds 19.48% of the total ownership. The remaining major shareholding is held by various Financial Institutions (12.77%), Insurance Companies (5.61%), Joint Stock Companies (3.00%), Modaraba/Mutual Fund & Leasing Companies (9.09%) and general public (28.22%). Overall control of the company vests in a nine-member board of directors (BoD) including the CEO. Mr. Kamran Kamal is the CEO of the company. He has been associated with the company for about nine years. He is accompanied by a team of qualified individuals.