The Pakistan Credit Rating Agency Limited
16-Jun-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Debt Instrument Rating | Jun-21
- Methodology | Independent Power Producer Rating | Jun-21
- Criteria | Correlation Between Long-term & Short-term Rating Scales | Jun-21
- Criteria | Rating Modifiers | Jun-21
Related Research
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PACRA withdraws The Rating of The Hub Power Company Limited | PPSTS
| Issuer | The Hub Power Company Limited |
| Instrument | |
| Amount | PKR 4500 mln |
| Issuance Date | 02-Nov-21 |
| Tenor | 1 Years |
| Redemption Date | 02-May-22 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (16-Jun-22 ) |
Previous (13-Dec-21 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA+ |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
The Hub Power Company Limited (the "Company") has issued unsecured, privately placed ,short-term Sukuk (PPSTS) of PKR 4,500mln on November 02, 2021. 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+80bps. The Company has paid in full, all markup and outstanding principal amount in timely manner. The PPSTS has been redeemed on May 02, 2022.
Subsequent to the redemption process, The Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of The Hub Power Company Limited | PPSTS.
About
the Entity
HUBCO, a listed company, which was incorporated in 1991. Mega Conglomerate (Pvt.) Ltd (19.5 %) is the single largest shareholder followed Fauji Foundation (8.5%), Allied Bank (4.4%) and NBP (3.6%). The remaining ownership is shared by Insurance companies, Mutual Funds and general public. HUBCO has investments in Sindh Engro Coal Mining Company (SECMC), Narowal Energy Ltd, Laraib Energy, Thar Energy Ltd, Hub Power Services Ltd (HPSL) and through Hub Power Holdings have interest in China Power Hub Generation Company (CPHGC) & ThalNova Power Thar Pvt Ltd. The BoD comprises nine members including the CEO of Hubco. BoD includes three representatives from Mega Conglomerate including the Chairman along with Independent Directors.