The Pakistan Credit Rating Agency Limited
20-Jul-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Rating | Jun-22
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Rating Modifiers | Jun-22
Related Research
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PACRA withdraws the Rating of Pak Arab Fertilizers Limited | TFC
| Issuer | Pak Arab Fertilizers Limited |
| Instrument | TFC-I |
| Amount | PKR 450 mln |
| Issuance Date | 28-Feb-17 |
| Tenor | 5 Years |
| Redemption Date | 30-Jun-22 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (20-Jul-22 ) |
Previous (05-Aug-21 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | A- |
| Short Term | - | - |
| Outlook | Developing | |
| Rating Watch | - | Yes |
Pak Arab Fertilizer Limited (the "Company") issued a Privately Placed Term Finance Certificate ("TFC") of PKR 450mln on February 28, 2017. The purpose of the proceeds were to be utilized for financing the ongoing capital expenditure and related expenses including fulfillment of store and spares requirements of the Company. The tenor of the instrument was 5 years (extended to 6 years due to the principal's deferment) and carried a profit rate of 6MK+190bps. The Company has paid in full, all markup and outstanding principal amount on time. The TFC matured in full on June 30, 2022.
Subsequent to the redemption of the TFC, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Pak Arab Fertilizers Limited | TFC.
About
the Entity
Pak Arab Fertilizers Limited ('Pak Arab' or 'the Company') is a Public Unlisted Company. The Company engaged in importing and trading DAP, manufacturing and selling Liquid Carbon Dioxide (LCO2), along with providing Operations & Maintenance services. The Company's LCO2 plant is located at Sadiqabad, within the premises of Fatima Fertilizer, and has a production capacity of 192MT/per day.
Pak Arab is owned by Arif Habib Group (50%), Fatima Group (41%), and Fazal Group (9%). The Company's Board is chaired by Mr. Arif Habib. While Mr. Fawad Ahmed Mukhtar heads the Company as its CEO. He is aided by a team of experienced professionals