PACRA Assigns Initial Entity Ratings to Novacare Hospitals (Pvt.) Limited

Novacare Hospitals (Private) Limited (NHPL or the Company) is developing a 250-bed greenfield tertiary care hospital in DHA Phase V, Islamabad. NHPL is a wholly owned subsidiary of Maple Leaf Cement Factory Limited (MLCF), a listed flagship of Kohinoor Maple Leaf Group, provides financial backing through its established presence in capital-intensive industries. The clinical-governance affiliation with Imperial College Healthcare NHS Trust and the engagement of Andalus Holdings (ADGM) Limited as healthcare management advisor, support the planned service delivery model. However, the Company’s competitive position remains to be established following commissioning. Funding is planned at 50:50 debt to equity, including operating losses. Construction has been financed mainly by sponsor equity, with gearing of ~24% at Jun-26 following a short-term sponsor loan. Drawdown of the long-term syndicated Diminishing Musharaka facility, arranged by six institutions led by The Bank of Punjab, began in July 2026 after financial close. Lender protection is supported by a Sponsor Support Agreement, under which the Sponsor has committed to fund all cost overruns, MLCF’s corporate guarantee, first-ranking pari passu security, controlled project accounts, and a defined cash flow waterfall. These mitigants support funding availability and recovery more than operating performance. Overall project completion stood at approximately 53% at Sep-26, with hospitals’ operational commencement targeted in H2 CY27. Licensing, specialist and nursing recruitment and information system implementation remain pre-opening milestones, while the construction is underway to obtain LEED and EDGE certification along with JCI accreditation. As a pre-operational entity, NHPL has no positive operating cash flow base, so conventional profitability and coverage metrics are not meaningful at this stage. Leverage will rise with drawdowns ahead of revenue, leaving debt servicing dependent on commissioning, occupancy ramp-up and revenue stabilization. The Company benefits from an experienced Board and management team with relevant healthcare-sector expertise, supported by established management information systems and key control frameworks. These provide a foundation for oversight and operational execution. Overall, the planned facility, institutional affiliation, sponsor backing and structured financing support the ratings, while the absence of an operating track record limits visibility on performance. Going forward, the credit profile will depend on timely commissioning, retention of qualified medical professionals, bed utilization rates and sustainable cash flow generation.
The ratings are dependent upon timely commissioning, establishment of a sustainable and targeted occupancy level, achievement of projected operating performance and financing structure, while maintaining a prudent financial profile as long-term borrowings progressively drawn and become operational. Sustained sponsor commitment and governance oversight remain integral to the ratings. Successful operational ramp-up and adequate coverage and liquidity indicators post-commencement, will remain imperative.

About the Entity
Novacare Hospitals (Private) Limited was incorporated in Islamabad on 21 March 2023 as a private limited company under the Companies Act, 2017. The Company is in a pre-operational phase with planned capacity of 250 beds and project site is located in DHA Phase V, Islamabad. The Company is a wholly-owned subsidiary of Maple Leaf Cement Factory Limited (MLCF). The Board comprises six members, with Mr. Taufique Sayeed Saigol chairing the board and Mr. Johannes Theodorus (Hans) Kedzierski serving as CEO.