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The Pakistan Credit Rating Agency Limited
Press Release

Date
01-Apr-21

Analyst
Timnat Thomas
timnat.thomas@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

Dawood Hercules Corporation Limited Redeems | Sukuk II | PACRA Withdraws Instrument Rating

Issuer Dawood Hercules Corporation Limited
Instrument Sukuk-II
Amount PKR 6000 mln
Issuance Date 01-Mar-19
Tenor 2 Years
Redemption Date 01-Mar-21
Outstanding Amount -

Rating Type Debt Instrument
Current
(01-Apr-21 )
Previous
(26-Jun-20 )
Action Redeem Maintain
Long Term - AA
Short Term - -
Outlook Stable
Rating Watch - -

Dawood Hercules Corporation Limited ("DH Corp" or "the Company") has issued secured, privately placed Islamic Certificates "Sukuk" amounting to PKR 6bln on 1st March, 2019. The purpose of the issue was to consolidate and re-profile the existing debt of the Company and to utilize the remaining proceeds into the business operations. The principal was to be repaid in 8 step up semi-annual payments in arrears and profit repayment was made quarterly in arrears on the outstanding principal amount at a floating rate of 3M-KIBOR plus 100bps. The Sukuk was to mature in five years from the date of issue in Feb' 2023. But later, on 18th December, 2020, the Board has approved the early repayment of the Sukuk. Keeping in view with the decision, the payment of outstanding principal of Sukuk amounting to PKR 4.2bln and mark-up amounting to PKR 85.9mln was made to the certificate holders of the Sukuk on 1st March, 2021.
Subsequent to the early repayment the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Dawood Hercules Corporation Limited | Sukuk II.

About the Entity
Dawood Hercules Corporation Limited's ("DH Corp" or "the Company") is a public listed company incorporated in 1968. The principal activity of the Company is to manage investments including its subsidiary and associated companies. Dawood Group (Dawood Family and Associates) holds 34% stake in DH Corp through its’ corporate entities (20%) and individuals (14%). Other related foreign companies hold 54% shareholding in DH Corp, 9% is held by corporate and financial institutions whereas 3% is held by general public. The Company's BoD is chaired by Mr. Hussain Dawood, the patriarch of Dawood family. Mr. Inam-Ur-Rehman is serving as the Company's CEO since Dec-16.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.