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The Pakistan Credit Rating Agency Limited
Press Release

Date
18-May-20

Analyst
Sana Shameen
sana.shameen@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K-Electric Limited redeems Islamic Commercial Paper upto PKR 8,000mln | Aug-19 fully redeemed; rating withdrawn

Issuer K-Electric Limited
Instrument CP
Amount PKR 8000 mln
Issuance Date 28-Aug-19
Tenor 0 Years
Redemption Date 28-Feb-20
Outstanding Amount -

Rating Type Debt Instrument
Current
(18-May-20 )
Previous
(29-Aug-19 )
Action Redeem Initial
Long Term - AA
Short Term - A1+
Outlook - Developing
Rating Watch - Yes

K-Electric Limited issued an unsecured Islamic commercial paper of upto PKR 8,000mln issued at a discount to the face value to finance the on going working capital requirements. The Commercial Paper had a tenor of six months, carried a profit rate of 6MK + 130bps and was scheduled to be redeemed at face value on the maturity date. The instrument due for the final redemption in Feb-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Subsequent to the completion of the redemption process, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric Limited | Islamic Commercial Paper of PKR 8bln | Aug-19.

About the Entity
K-Electric, a vertically-integrated power utility, has been in operations for more than a century. 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 thirteen 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.