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The Pakistan Credit Rating Agency Limited
Press Release

Date
08-Dec-20

Analyst
Madiha Sohail
madiha.sohail@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

K-Electric Limited redeems K-Electric Limited | Islamic Commercial Paper-6 upto PKR 4,295mln

Issuer K-Electric Limited
Instrument CP
Amount PKR 4295 mln
Issuance Date 26-Feb-20
Tenor 0.5 Years
Redemption Date 26-Aug-20
Outstanding Amount -

Rating Type Debt Instrument
Current
(08-Dec-20)
Previous
(29-Jun-20)
Action Redeem Initial
Long Term - AA
Short Term - A1+
Outlook Stable
Rating Watch - -

Under the Islamic Commercial Paper program, K-Electric previously issued five Islamic Commercial papers, out of which; two (ICP-3 & ICP-A.) were rated by PACRA. K-Electric issued the sixth unsecured Islamic commercial paper of PKR 4,295mln (ICP-6) to finance the ongoing working capital requirements. The Commercial Paper had a tenor of six months, carried a profit rate of 6MK + 115bps and was scheduled to be redeemed at face value on the maturity date. The instrument due for the final redemption in August-20, has been fully redeemed.
Subsequent to the completion of the redemption process, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric Limited | Islamic Commercial Paper of PKR 4,295bln (ICP-6).

About the Entity
K-Electric, a vertically-integrated power utility, has been in operations for more than a century. Total installed capacity of K-Electric is 2,267MW, having an arrangement with external power producers for 1,400 MW including 650 MW from the National Grids. At end-Jun19, KES Power Limited (KESP) held 66.4% share in K-Electric, while Government of Pakistan owned 24.4%. KES Power majority is owned (53.8%) by Abraaj Capital (Private Equity Group) with the balance held by a group of investors (Al Jomaih, Saudi Arabia and NIG, Kuwait). KES Power has entered into a share purchase agreement with Shanghai Electric Power Company Limited (SEP) for sale of up to 66.4% shares of K-Electric against a consideration of US$ 1.77bln. The transaction is in process and will close once customary closing conditions and requisite regulatory approvals are obtained. K-Electric has twelve member board. Mr. Moonis Alvi, CEO is associated with the company since 2008. He is supported by an experienced 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.