The Pakistan Credit Rating Agency Limited
06-Dec-24
Analyst
Hashim Yazdani
hashim.yazdani@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-24
- Methodology | Independent Power Producer Rating | Jul-24
- Methodology | Debt Instrument Rating | Oct-24
Related Research
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PACRA Withdraws the Rating of The Hub Power Company Limited | PPSTS | PKR 6bln | May-24
| Issuer | The Hub Power Company Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 6000 mln |
| Issuance Date | 03-May-24 |
| Tenor | 0.5 Years |
| Redemption Date | 04-Nov-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (06-Dec-24 ) |
Previous (14-Jun-24 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA+ |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
The Hub Power Company Limited issued an unsecured, privately placed short term sukuk of PKR 6bln on May 3, 2024 to finance the Company's working capital requirements. The instrument, having a tenor of six months, carried a profit rate of 6M KIBOR + 0.25%. The Company has paid in full, all profit and outstanding principal amount. The Sukuk has been redeemed on November 4, 2024.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the ratings of The Hub Power Company Limited | PPSTS | PKR 6bln | May-24.
About
the Entity
HUBCO, a listed company, was incorporated in 1991. Mega Conglomerate holds the majority stake in HUBCO of 19.48% of the total ownership while Fauji Foundation holds, an 8.5% ownership stake. The remaining shareholding is held by various Financial Institutions, Insurance Companies, Joint Stock Companies, Modaraba/Mutual Fund & Leasing Companies and the Public. Overall control of the Company vests in a nine-member board of directors (BoD). The BoD comprises 3 nominees from Mega Conglomerate, 1 nominee each from NIT and Fauji Foundation. 1 member represents the Government of Balochistan along with 2 independent directors. Mr. Kamran Kamal is the CEO of the Company and has been associated with the Group for about eight years.