PACRA Maintains Entity Ratings of ACT2 Din Wind (Pvt.) Limited

Act2 Din Wind (Pvt.) Limited (“Act2 Din Wind” or “the Company”) is a 50MW wind power plant located at Jhimpir, Sindh. The Company operates under a 25-year Energy Purchase Agreement (EPA) with CPPA-G, effective from its Commercial Operations Date (COD) of February 27, 2022. The long-term EPA provides revenue visibility; however, cash flows remain exposed to wind resource variability, resulting in seasonal fluctuations in generation. Operational and business interruption risks are mitigated through comprehensive insurance coverage. During FY25, Act2 Din Wind generated 122 GWh of electricity (FY24: 115 GWh), translating into a load factor of 27.8% (FY24: 26.3%), which remained below the benchmark stipulated in the EPA. Despite the improvement in generation, revenue declined to PKR 1,935mln (FY24: PKR ~2,372mln), primarily due to interim tariff adjustments and exchange rate movements affecting the index-linked components of the tariff. Consequently, net profit decreased to PKR 378mln (FY24: PKR 694mln). The Company continues to meet its working capital needs through internally generated cash flows, with undrawn credit facilities available. Free cash flow from operations remained strong at PKR 1,632mln (FY24: PKR 2,082mln), supporting scheduled debt repayments. The Company has made steady progress in deleveraging, having repaid 33% of its local loan and 16% of its foreign loan as of the latest review. A Debt Service Reserve Account (DSRA), backed by Standby Letters of Credit (SBLCs) covering six months of obligations, remains in place. While leverage remains elevated, it continues to trend downward in line with the project’s repayment profile. The Company’s application for a true-up tariff review with the Authority remains pending, with the outcome and timeline still uncertain. Interim tariff indexation continues to apply, subject to final reconciliation upon NEPRA’s determination.
The ratings incorporate the strong financial and operational profile of the sponsoring consortium alongside the long-term visibility offered by its government-backed EPA. The maintenance of sound cash flows and adherence to the debt repayment schedule are positive factors. Sustaining operational performance in line with benchmarks and managing regulatory developments, including the pending tariff review, remains important for the ratings.

About the Entity
Act2 Din Wind (Pvt.) Limited was incorporated in November 2015 as a Renewable Energy Independent Power Producer under Pakistan’s Renewable Energy Policy 2006. The project’s total cost is USD 62.95mln, financed under an 80:20 debt-to-equity structure. Debt comprises a USD 25mln foreign loan (3M SOFR + 4.25%) and a local facility capped at PKR 4.5bln. The foreign loan has a 13-year tenor with quarterly repayments, while the local loan carries a 10-year tenor. The Company is led by CEO Mr. Khurshid Akhtar, supported by an experienced management team.