The Pakistan Credit Rating Agency Limited
Press Release


Mustafa Hassan

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 1.25 Years
Redemption Date 17-May-19
Outstanding Amount -

Rating Type Debt Instrument
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.

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.