The Pakistan Credit Rating Agency Limited
07-Nov-23
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Holding Company Rating | Jul-23
- Methodology | Rating Modifiers | Apr-23
- Methodology | Debt Instrument Rating | Aug-23
Related Research
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PACRA Withdraws Rating of Jahangir Siddiqui & Co. Ltd. | TFC XI | Mar-18 | Redeemed
| Issuer | Jahangir Siddiqui & Co. Ltd. |
| Instrument | |
| Amount | PKR 1500 mln |
| Issuance Date | 06-Mar-18 |
| Tenor | 5.5 Years |
| Redemption Date | 06-Sep-23 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (07-Nov-23 ) |
Previous (04-Aug-23 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | AA+ |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
In Mar'18 Jahangir Siddiqui & Co. Ltd. ('JSCL' or the "Company') issued its TFC XI, with the tenor of 5 years (Deferred to 5.5 years due to COVID). On 6th Sept'23, the TFC matured, and final markup and principal payments were made to its investors thus the Company redeemed in full the entire principal amount of PKR 1,500mln along with the markup payments.
Subsequent to the redemption of the Term Finance Certificate, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Jahangir Siddiqui & Co. Ltd. | TFC XI | Mar-18.
About
the Entity
JSCL, a successor to the brokerage business started in the early seventies by Mr. Jahangir Siddiqui, was established in 1991 and is listed on the Pakistan Stock Exchange. JSCL, JS Group’s flagship holding company, has a portfolio of investments categorized into a) core investments (subsidiaries), b) strategic investments and c) trading investments. Investments in the financial segment dominate the portfolio with a significant concentration in the banking and insurance sectors. Other investments are in the energy, petroleum, and infrastructure sectors. Justice (R) Agha Rafiq Ahmed Khan is Chairman of the BoD, while, Mr Asad Nasir heads the Company as CEO.
About
the Instrument
The Company issued Over-The-Counter Listed, Term Finance Certificates (TFCs) of PKR 1,500mln. The proceeds were utilized for the expansion of business and other ongoing operations of JSCL. The instrument carried a profit rate of 6MK + 140bps with a tenor of five (5) years (Deferred to 5.5 years due to COVID). The Company had a right to exercise the call option before the maturity date.