The Pakistan Credit Rating Agency Limited
29-May-19
Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com
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
Pak Elektron Limited Redeems PP Sukuk | Feb-18; PACRA Withdraws Instrument Rating
| Issuer | Pak Elektron Limited |
| Instrument | Sukuk-IV |
| Amount | PKR 1500 mln |
| Issuance Date | 19-Feb-18 |
| Tenor | 1 Years |
| Redemption Date | 17-May-19 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (29-May-19 ) |
Previous (09-Mar-19 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | AA- |
| Short Term | - | - |
| Outlook | - | Stable |
| Rating Watch | - | - |
Sukuk IV was issued in Feb-18 for PKR 1,500mln and had a tenor of 15 months, with a partial/full call option after 12 months. The instrument carried a profit rate of 3MKibor + 105bps, payable in quarterly installments. Principal was to be paid in one bullet payment at maturity in May 2019. The instrument was paid off prior to the final redemption date of 19th May, 2019 and took place in four phases on 17th April, 2019, 3rd May, 2019, 10th May, 2019 and 17th May, 2019.
Thus, PACRA withdraws the debt instrument rating of ‘AA-’ with immediate effect.
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 (~50.3%). 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.