The Pakistan Credit Rating Agency Limited
02-Jul-21
Analyst
Timnat Thomas
timnat.thomas@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Sukuk | Jun-20
- Methodology | Corporate Ratings | Jun-20
- Criteria | Rating Modifier | Jun-20
Related Research
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
PACRA Withdraws Rating of Pak Elektron Limited | PP Sukuk | Dec-19
| Issuer | Pak Elektron Limited |
| Instrument | Privately Placed Sukuk V |
| Amount | PKR 1200 mln |
| Issuance Date | 10-Dec-19 |
| Tenor | 1 Years |
| Redemption Date | 10-Mar-21 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (02-Jul-21 ) |
Previous (07-Jul-20 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | A+ |
| Short Term | - | - |
| Outlook | Negative | |
| Rating Watch | - | Yes |
Pak Elektron Limited issued a rated, secured, privately placed short term Sukuk of PKR 1,200mln on 10th December 2019 to finance the Company's working capital requirements. The tenor of short term Sukuk was 15 months and carried a profit rate of 3 months KIBOR+150ps. The profit amounting to PKR 26.02mln was paid on the outstanding principal at the time of maturity along with one bullet repayment of principal of PKR 1,200mln. The Sukuk matured in March-2021 at the end of the fifteenth month from the date of issue.
Subsequent to the redemption of the Short Term Sukuk, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Pak Elektron Limited | PP Sukuk | Dec-19.
About
the Entity
PEL is a listed public limited company and was incorporated in 1956. The Company is principally engaged in the manufacturing and sale of electrical capital goods and domestic appliances. PEL is majorly owned by Saigol Group (~51%). Other interests of the group include power, textile and real estate. Mr. Naseem Saigol is the Chairman of the nine-member Board. Saigol family has a prominent presence on the Board. Mr. Murad Saigol, the CEO, monitors all the strategic and operational affairs of the Company. He is supported by an experienced team.