The Pakistan Credit Rating Agency Limited
28-Aug-24
Analyst
Ali Arslan Malik
Ali.Arslan@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Debt Instrument Rating | Dec-23
- Methodology | Rating Modifiers | Apr-24
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-24
- Methodology | Independent Power Producer Rating | Jul-24
Related Research
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PACRA Withdraws the Ratings of K-Electric Limited | PPSTS-23 | PKR 5bln | Feb-24 | Redeemed
| Issuer | K-Electric Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 5000 mln |
| Issuance Date | 14-Feb-24 |
| Tenor | 0.5 Years |
| Redemption Date | 15-Aug-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (28-Aug-24 ) |
Previous (30-Apr-24 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
K-Electric Limited issued a rated, Privately Placed Sukuk (PPSTS-23) of PKR 5,000mln on 14-Feb-24. The tenor of the instrument was 6 months and carried a profit rate of 6MK+10bps. The instrument has been repaid, and hence redeemed. The Company has paid in full, all markup and outstanding principal amount. The Sukuk has been redeemed on 15-Aug-24.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the ratings of K-Electric Limited | PPSTS-23 | PKR 5bln | Feb-24.
About
the Entity
K-Electric Limited (KE), a vertically integrated power utility, has been in operation for more than a century. KE’s power generation capacity is 2,817MW. In addition to its own generation capacity, KE has arrangements with several IPPs & CPPA-G for 1,650MW+ capacity. KES Power Limited holds 66.4% shares in K-Electric, while the Government of Pakistan owns 24.4%. KES Power has three major shareholders i.e. Al-Jomaih Group of KSA, NIG of Kuwait and IGCF SPV 21 Limited (an SPV registered in Cayman Islands). Mr. Moonis Alvi, CEO is associated with the Company since 2008. He is supported by an experienced team.