Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
PACRA withdraws the Rating of The Hub Power Company Limited | PP Sukuk
Issuer | The Hub Power Company Limited |
Instrument | Sukuk |
Amount | PKR 7000 mln |
Issuance Date | 22-Aug-19 |
Tenor | 4 Years |
Redemption Date | 22-Aug-23 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (29-Aug-23 ) |
Previous (26-Aug-22 ) |
|
Action | Redeem | Maintain |
Long Term | - | AA+ |
Short Term | - | - |
Outlook | Stable | |
Rating Watch | - | - |
The Hub Power Company Limited issued a rated, secured, privately placed (subsequently listed) Islamic certificates (Sukuk) of PKR 7,000mln in Aug'19 to partially finance the equity investment of Hubco in growth projects. The Sukuk had a tenor of four (4) years from the issue date inclusive of a grace period of two (2) years. The profit is being paid quarterly in arrears at the rate of 3M Kibor+1.9% p.a. The instrument has been repaid, hence redeemed. The Company has paid in full, all markup and outstanding principal amount. The Sukuk has been redeemed on Aug 22, 2023.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of The Hub Power Company Limited | PP Sukuk.
About
the Entity
Hubco, a listed company, was incorporated in 1991. Mega Conglomerate being the largest shareholder holds 19.5% of the total ownership. Other institutions include Fauji Foundation (8.5%), Allied bank (4.4%) and National Bank (3.6%). The company has made sizeable investments in the power sector including power generation, oil & gas exploration, operations & maintenance services and coal mining. Overall control of the company vests in a nine-member board of directors (BoD) including the CEO. The BoD comprises of 3 nominees from Mega Conglomerate, 1 nominee each of NIT, Fauji Foundation and Government of Balochistan along with 2 Independent directors. Mr. Kamran Kamal is the CEO of the company. He has been associated with the company for about seven years and is serving on the current position for almost one year. He is accompanied by a team of qualified individuals heading the respective divisions in the company.