PACRA Withdraws Rating of K-Electric Limited | Islamic Commercial Paper-12 of PKR 3,200mln
|Amount||PKR 3200 mln|
|Rating Type||Debt Instrument|
K-Electric issued a rated, privately placed, and unsecured Islamic Commercial Paper (ICP-12) of PKR 3,200mln on 24th September 2020. ICP-12 was part of series of instruments comprising ICPs which will be utilized for funding K-Electric working capital requirements. The tenor of ICP-12 was 6 months and carried a profit rate of 6 months KIBOR+75bps. The profit amounting to PKR 160mln was paid on the outstanding principal at the time of maturity. The Islamic Commercial Paper matured in six months from the date of issue in March 2021.
Subsequent to the redemption of the Islamic Commercial Paper, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric Limited | Islamic Commercial Paper-12.
K-Electric, a vertically integrated power utility, has been in operations for more than a century. The total installed capacity of K-Electric is 2,267MW, having an arrangement with external power producers for 1,400 MW including 800 MW from the National Grids. At end-Jun20, KES Power Limited (KESP) held a 66.4% share in K-Electric, while the 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 the sale of up to 66.4% shares of K-Electric against 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 a thirteen-member board. Mr Moonis Alvi, CEO is associated with the company since 2008. He is supported by an experienced team.