Analyst
Timnat Thomas
timnat.thomas@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
PACRA Withdraws Rating of TPL Properties Limited | TFC 'Series A'
Issuer | TPL Properties Limited |
Instrument | TFC Series A |
Amount | PKR 2200 mln |
Issuance Date | 16-Mar-18 |
Tenor | 3 Years |
Redemption Date | 29-Apr-21 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (07-May-21 ) |
Previous (11-May-20 ) |
|
Action | Redeem | Maintain |
Long Term | - | A+ |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
TPL Properties issued a 'Series A' of privately placed and secured Term Finance Certificates (TFC) amounting to PKR 2,200mln in March 2018. The principal of PKR 154mln and profit at a rate of 6MKIBOR plus 125bps of PKR 679mln was repaid from Sep 2018 to March 2020 in consecutive semi-annual instalments. The TFC was to fully mature in twelve years from the date of issue Mar-2018. But later, the Board has approved the early payment of the TFC. Keeping in view with
this, the payment of the outstanding principal of TFC amounting to PKR 2,046mln and mark-up amounting to PKR 22mln was made to the TFC holder on 29th April 2021.
Subsequent to the early repayment the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of TPL Properties Limited | TFC 'Series A'.
About
the Entity
TPL Properties is the real estate arm of TPL Group. The company is engaged in real estate development and property management. TPL Properties is majority (45.8%) owned by TPL Group. TPL Properties has an eight-member board of directors. Four members, including one executive and three non-executive members, represent TPL Group while three members are independent of sponsoring group. Mr Ali Jameel, the CEO, is supported by an experienced team. During the year Mr Abdul Wahab Al Halabi joined the board as an independent director. Mr Abdul Wahab Al Halabi has over 23 years of experience in the field of executive management. He was previously on several boards including Emirates REIT Management, a NASDAQ Dubai listed entity, Plant Pharmacy LLC and several other private enterprises.