PACRA Redeems Rating of Zarea Limited - PPSTS - PKR 1bln - Jan-26

About the Entity
Zarea Limited (“ZAL” or the “Company”) was incorporated in Pakistan on September 16, 2020, converted into a public limited company on April 15, 2024, and listed on the Pakistan Stock Exchange (PSX) on February 28, 2025 through an IPO of 62,500,000 ordinary shares, raising gross proceeds of ~PKR 1,031.82 million. ZAL operates one of Pakistan's leading online B2B marketplaces, connecting buyers and sellers of commodities through a proprietary technology platform, with revenue primarily derived from Platform Usage Fees (PUF) and the purchase and sale of agricultural commodities, supplemented by income from short-term investments in equities, fixed-income securities, and mutual funds. The Company has executed 22,000+ transactions across 50+ cities, supported by a proprietary commodity data repository and real-time order tracking. ZAL functions as a holding Company with two subsidiaries, Zarea Agri-Tech (Private) Limited (75% owned) and Zarea Commerce FZCO, UAE (100% owned). ZAL's registered office is located at Delta 6, Office No. 6011, NASTP, Abid Majeed Road, Lahore Cantt., with Mr. Ali Alam Qamar as CEO/Director and Mrs. Misbah Momin as Chairperson/Director, supported by a professional Board.

About the Instrument
Zarea Limited issued its first rated, Shariah-compliant, privately placed, unsecured short-term facility structured under Musharakah (Shirkat-ul-Aqd), with an issue size of PKR 1,000 million and a six-month tenor spanning January to July 2026, priced at 6M KIBOR + 2.50%. The proceeds were utilized to finance the Company's working capital requirements. Profit and principal were structured to be settled in a single bullet payment at maturity, with structural protection provided through a Sukuk Payment Account that was pre-funded in four weekly tranches, the first three covering principal, and the final tranche covering both principal and profit. In accordance with the agreed funding mechanism, the Sukuk Payment Account (SPA) was funded by the Issuer on each scheduled date, with the final tranche completed on July 23, 2026. Upon completion of the full pre-funding mechanism, disbursement of principal along with profit was made to investors. The redemption is evident from the Investment Agent Certificate along with supporting bank statements, confirming that an aggregate amount equivalent to the full issue size, along with profit, was paid to investors in full and on time. In light of the successful redemption, the Pakistan Credit Rating Agency (PACRA) has redeemed the rating of Zarea Limited – PPSTS – PKR 1bln – Jan-26.