PACRA affirms Rating of JazzWorld Pakistan Limited (Formerly Pakistan Mobile Communications Limited)- Sukuk - PKR 5bln – TBI

JazzWorld Pakistan Limited ("Jazz" or "the Company"), (Formerly Pakistan Mobile Communications Limited) is set to issue the Rated, Secured, Medium Term and Main Board Listed Sukuk. The issue amount for Sukuk, is up to PKR 5,000mln (Exclusive of PKR 3,000mln). The assigned rating reflects comfort from the Company’s leading position in Pakistan’s telecommunications and digital services landscape, serving nearly 75mln mobile subscribers, including over 57mln 4G users. Supported by a diversified digital ecosystem reaching more than 143mln users, the Company has evolved beyond traditional connectivity services and remains well-positioned to contribute to Pakistan’s digital transformation. The proposed Sukuk issuance has not yet been undertaken and remains subject to the Company's assessment of market conditions, funding requirements, and available financing alternatives. Jazz’ digital services now account for ~37% of total revenue, reflecting the growing significance of non-connectivity businesses within the Company's overall operating profile. Over time, Jazz has expanded beyond traditional telecommunications services, establishing a presence across multiple digital growth segments, including financial services, entertainment, cloud and enterprise solutions, insurtech, data analytics, and digital lifestyle offerings. Through platforms such as JazzCash, Tamasha, SIMOSA, Garaj, FikrFree, and GameNow, the Company continues to enhance digital accessibility, promote financial inclusion, and support the increasing adoption of technology-driven services across Pakistan. According to the Pakistan Telecommunication Authority (PTA), the telecommunications sector generated revenues exceeding PKR 1 trillion, representing approximately ~12% year-on-year growth. Industry investments increased by around ~9% to USD 838mln, driven by network expansion and continued upgrades to digital infrastructure. The Company's capital structure remains leveraged, with the debt-to-capital ratio increasing to ~72% in CY25 from around ~69% in CY24, primarily reflecting long-term funding requirements related to license payments and ongoing capital expenditure. Borrowings continue to be predominantly long-term in nature, supporting the Company's investment horizon and operational requirements. Going forward, continued growth in data monetization, increasing digital adoption, and the phased rollout of 5G services are expected to underpin revenue growth and support the Company's business profile.
The ratings remain dependent upon Jazz's ability to sustain its market leadership, maintain robust revenue growth, strengthen profitability, and preserve a sound financial profile. Given the relatively leveraged capital structure, continued adherence to prudent financial management and maintenance of strong cash-flow generation will remain important rating considerations.

About the Entity
JazzWorld Pakistan Limited– brand name ‘Jazz’ commenced its operations in August 1994. The Company is a subsidiary of International Wireless Communications Pakistan Limited, which holds ~85% of the issued share capital in the Company. VEON Pakistan Holdings B.V holds ~15% of the issued share capital in the Company. The ultimate parent Company is VEON Ltd.

About the Instrument
The tenor of the Sukuk shall be of ~5 years from the issue date, with a grace period of ~1 year. Principal is to be redeemed on semi-annually basis. Profit payment would be made on semi-annual basis, though, profit rate is yet to be decided. The funds will be utilized for meeting the working capital requirement.