The Pakistan Credit Rating Agency Limited
Press Release


Saadat Mirza

Applicable Criteria

Related Research

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

Hub Power Company Limited | Commercial Paper of PKR 4bln fully redeemed; rating withdrawn

Issuer The Hub Power Company Limited
Instrument CP
Amount PKR 4000 mln
Issuance Date 27-Feb-19
Tenor 0.75 Years
Redemption Date 27-Nov-19
Outstanding Amount -

Rating Type Debt Instrument
Action Redeem Maintain
Long Term - AA+
Short Term - A1+
Outlook - Stable
Rating Watch - -

Final payments along with mark up @3MK+1.00% of Short-Term Commercial Paper issued by Hub Power Company Limited issued in 27-Feb-19 for PKR 4,000mln has been completed. The interest on instrument was paid in three quarterly installments starting May-19. Final installment of PKR 4,040mln (Nov-19) has been paid and the instrument has been fully redeemed.
Subsequent to the completion of the redemption process, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Hub Power Company Limited | Short-Term Commercial Paper.

About the Entity
Hubco, a listed company, was incorporated in 1991. Mega Conglomerate (Pvt.) Ltd (19.5 %) is the single largest shareholder, followed by ABL (8.95%), Fauji Foundation (8.5%) and NBP (3.6%). Hubco holds 100% stake in Narowal Energy Ltd which operates a 225MW capacity oilfired power plant at Narowal. The BoD comprises eleven-members including the CEO of Hubco. BoD includes three representatives from Mega Conglomerate. Mr. Khalid Mansoor, the CEO, carries over three decades of experience in Energy & Petrochemical sectors in leading roles. He is supported by a team of experienced professionals.

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.