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The Pakistan Credit Rating Agency Limited
Press Release

Date
20-Dec-19

Analyst
Faiqa Qamar
faiqa.qamar@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

Pak Elektron Limited Redeems CP | March 19 | PACRA Withdraws Instrument Rating

Issuer Pak Elektron Limited
Instrument
Amount PKR mln
Issuance Date 01-Jan-70
Tenor Years
Redemption Date 01-Jan-70
Outstanding Amount -

Rating Type Debt Instrument
Current
(20-Dec-19)
Previous
(22-Aug-19)
Action Redeem Maintain
Long Term - -
Short Term A1 A1
Outlook Stable Stable
Rating Watch - -

The Company issued a privately placed Commercial Paper worth PKR 1,200mln on March,2019, to finance working capital requirements. The Paper had a tenor of nine (9) months and carried a profit rate of 9MK + 125bps. Issuance was in the form of promissory notes at a discount to face value with redemption at face value in one bullet payment at maturity.
Subsequent to the repayment of Commercial Paper, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Pak Elektron Limited CP | March 19 |

About the Entity
PEL is a listed Public Limited Company and was incorporated in 1956. The Company is principally engaged in manufacturing and sale of electrical capital goods and domestic appliances. PEL is majorly owned by Saigol Group (~50%). Other interests of the group include power, textile and real estate. Mr. Naseem Saigol is the Chairman of the ten member Board. Saigol family has prominent presence on Board. Mr. Murad Saigol, MD/CEO, monitors all of the strategic and operational affairs of the Company. He is supported by an experienced and stable management team.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.