PACRA Maintains Entity Ratings of ACT Wind (Pvt.) Limited

Tapal, Ismail, and Akhtar groups have established a 30MW wind power project – Act Wind (Pvt) Limited (“Act Wind” or “the Company”) located in Jhimpir, Sindh. The project was developed under the Renewable Energy Policy 2006, which ensures a guaranteed internal rate of return (IRR), indexed cost adjustments, and a pass-through tariff mechanism. The Company's revenues and cash flows are subject to two primary risks. First, wind risk: Under the upfront tariff model, the variability in wind availability is borne by the Company, making its cash flows potentially seasonal. Second, operational risk: The Company is obligated to maintain a 31% annual capacity factor. Mitigating this risk, operations and maintenance are handled by Hydro China, an experienced operator with both international and domestic credentials. Furthermore, the Company maintains comprehensive insurance coverage. For the six-month period ended FY25 (6MFY25), Act Wind reported sales revenue of approximately PKR 959 million, compared to PKR 1,667 million during the same period in 6MFY24. Net profit declined to around PKR 263 million in 6MFY25 from PKR 768 million in 6MFY24. The dip in earnings was primarily due to decreased operational output caused by government-mandated curtailments and lower wind availability. However, As per the management claim both profitability and energy generation have recovered during the ongoing fiscal period, supported by improved wind conditions and enhanced power offtake by the Government. The Company’s liquidity position has remained strong, with timely receipt of payments from CPPA-G. Act Wind has been able to meet its working capital needs entirely through internally generated cash flows, without resorting to short-term financing. The Company’s free cash flows remain healthy and sufficient for timely debt servicing. As of the reporting period, Act Wind has successfully repaid over 68% of its debt obligations on schedule, without utilizing the forbearance period, highlighting the strength of its financial structure and effective working capital management.
Sustaining sound financial discipline and consistently maintaining operational performance in accordance with the agreed benchmarks continue to be critical factors influencing the Company’s credit profile. The Company’s track record of meeting debt obligations through internally generated cash flows is viewed positively and serves as a supportive element for its credit rating.

About the Entity
ACT Wind (Private) Limited, incorporated in December 2010, is a Renewable Energy Independent Power Producer (RE IPP) operating under the framework of the Renewable Energy Policy 2006, overseen by the Alternative Energy Development Board (AEDB). The capital structure of the project includes 75% debt financing, amounting to PKR 6,008 million, with the debt priced at 3-month KIBOR plus 3% per annum. The debt has a ten-year repayment tenure, initiated in April 2017, to be repaid through twenty consecutive semi-annual installments. The Company's shareholding is equally divided among its three sponsors: Tapal Group, Ismail Power (Private) Limited (IPPL), and Akhtar Power (Private) Limited (APPL). These entities consolidated in August 2013 to jointly develop the wind power facility. Act’s Board of Directors consists of nine members, including the Chief Executive Officer (CEO). Each sponsor group nominates three directors to the board. Mr. Maqsood Ismail currently serves as the Chairman of the Board, while Mr. Adnaan Tapal, an electrical engineer by qualification, has held the position of CEO since September 2011. The CEO is backed by a team of seasoned professionals. As per governance arrangements, the positions of Chairman and CEO are subject to nomination and election every two years, although they may continue beyond the term with the mutual consent of the board. Recently, Mr. Mehmood Suleman has joined the Company as the Chief Financial Officer (CFO).