PACRA Maintains the Entity Ratings of Oursun Pakistan Limited

Oursun Pakistan Limited (the Company) operates a 50 MW solar power plant located in Gharo, District Thatta, Sindh. The Company’s ratings are supported by the strong profile of its sponsors, who possess extensive experience in the power sector. Financial close was achieved in June 2017, followed by a 25-year Energy Purchase Agreement (EPA) with K-Electric Limited. The EPA is supported by an escrow payment mechanism, which mitigates offtake risk and ensures payment certainty. Under the EPA, the power purchaser is obligated to compensate for non-project missed volumes based on applicable tariff rates. The Company’s revenue framework is structured under an upfront tariff, indexed quarterly to USD and CPI, with the applicable tariff for the quarter October–December 2025 standing at PKR 29.9869 per kWh. However, the Company remains exposed to solar resource variability, which can impact generation and result in cash flow fluctuations. Operational risks are mitigated through an O&M contract with Everone Energy Operations (Pvt.) Limited, a reputable service provider, and comprehensive insurance coverage against business interruption and asset damage. During FY25, the plant demonstrated consistent operational strength, achieving a capacity factor of approximately 20%, exceeding the required benchmark of 18%. Total generation for the fiscal year reached 89,675 MWh, surpassing NEPRA’s performance benchmark of 78,840 MWh. The company’s liquidity position remains strong, supported by healthy internal cash flows. Oursun meets all working capital needs from operational cash generation and has not utilized any short-term borrowing facilities. The Company’s financial profile has strengthened further due to continued timely debt repayments. As of the latest review, approximately 60% of the total project debt has been settled, contributing to a decline in the leverage ratio to 32.4% as of September 2025, down from 40.7% in FY24. In line with financing agreements, the Company maintains a fully funded Debt Service Reserve Account (DSRA) equivalent to two quarterly debt repayments.
The Company benefits from a stable offtake arrangement under its EPA with K-Electric, which includes an escrow mechanism for payment security. This differs from many IPPs that sell power to CPPA-G and rely on sovereign payment guarantees from the Government of Pakistan. The ratings incorporate the stability provided by this arrangement but remain sensitive to the Company’s ability to maintain operational efficiency, adhere to financial covenants, and navigate any adverse changes in the regulatory environment or the credit profile of K-Electric.

About the Entity
Oursun Pakistan Limited, incorporated in May 2015, is a Renewable Energy Independent Power Producer (REIPP) operating under the RE Policy 2006 by AEDB. The total project cost is approximately USD 62 million. Debt financing constitutes 75% of the project cost (USD 46.5 million), sourced from local and foreign financial institutions. The Company’s majority sponsor is M/s Future Energy Partners (72.5%), followed by Roomi Enterprises (Pvt.) Ltd (27.5%) and individuals (0.0003%). The Board of Directors comprises three members. Mr. Jamshed Afzal serves as the Company’s Chief Executive Officer, bringing relevant experience in the energy sector.