Analyst
Timnat Thomas
timnat.thomas@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Withdraws Rating of The Hub Power Company Limited | PPSTS of PKR 4,500mln
Issuer | The Hub Power Company Limited |
Instrument | Short Term Sukuk |
Amount | PKR 4500 mln |
Issuance Date | 05-May-21 |
Tenor | 0 Years |
Redemption Date | 05-Nov-21 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (26-Nov-21 ) |
Previous (27-May-21 ) |
|
Action | Redeem | Initial |
Long Term | - | AA+ |
Short Term | - | A1+ |
Outlook | Stable | |
Rating Watch | - | - |
The Hub Power Company Limited issued a rated, privately placed short term Sukuk of PKR 4,500mln on 5th May 2021 to meet short term working capital requirements of Hub River Power Station. The tenor of short term Sukuk was 6 months and carried a profit rate of 6 months KIBOR+110ps. The short term Sukuk matured in six months from the date of issue on 5th November 2021. The profit and principle were paid in their entirety at the time of maturity.
Subsequent to the redemption of the Short Term Sukuk, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of The Hub Power Company Limited | PPSTS.
About
the Entity
Hubco, a listed company, was incorporated in 1991. HUBCO itself is a large RFO based power plant and also holds multiple sizeable investments in the power sector. HUBCO has investments in Sindh Engro Coal Mining Company (SECMC), Narowal Energy Ltd, Laraib Energy, Thar Energy Ltd, Hub Power Services Ltd (HPSL) and through Hub Power Holdings have interest in China Power Hub Generation Company (CPHGC) & ThalNova Power Thar Pvt Ltd. Mega Conglomerate (Pvt.) Ltd (17.3 %) is the single largest shareholder, followed by ABL (7%), Fauji Foundation (8.5%), Jubilee Life Insurance (4.74%) and NBP (3.6%). The BoD comprises nine members including the CEO of Hubco. BoD includes three representatives from Mega Conglomerate. Mr. Kamran Kamal, the CEO, carries vast experience in Energy & technology sectors in leading roles. He is supported by a team of experienced professionals.