The Pakistan Credit Rating Agency Limited
04-Oct-24
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Debt Instrument Rating | Dec-23
- Methodology | Rating Modifiers | Apr-24
- Methodology | Corporate Rating | Jul-24
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-24
Related Research
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Airlink Communication Limited | PPSTS-I | PKR 3bln | Mar-24
| Issuer | Airlink Communication |
| Instrument | PPSTS-1 |
| Amount | PKR 3000 mln |
| Issuance Date | 18-Mar-24 |
| Tenor | 0.6 Years |
| Redemption Date | 18-Sep-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (04-Oct-24 ) |
Previous (09-May-24 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | A+ |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
Airlink Communication Limited issued Rated, Secured, Privately Placed, Short-Term Sukuk in March 2024. The Sukuk carried a markup of 6MK+1.75% with a tenor of six months. The underlying instrument was secured by a ranking charge over the current assets of the Company. The Issuer maintained and efficiently managed a Debt Payment Account (“DPA”) under the lien of the Investment Agent, whereby a payment equivalent to PKR 750 million was made starting from 45 days before the maturity date, and every fortnight thereafter, ensuring that an amount equivalent to the full issue amount was available in the DPA five days before the maturity date. The principal and profit payments were made in a bullet payment.
The Sukuk was redeemed on 18th September, 2024. Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Airlink Communication Limited | PPSTS-I | PKR 3bln | Mar-24.
About
the Entity
Airlink was formed as a partnership firm in 2010 for the import and distribution of IT-related products & services. In 2014, a new private company was incorporated simultaneously to take over the business of the partnership firm. During 2018, the entire partnership business transferred to the Company's books, and later in 2019, it got converted into a Public Unlisted Entity. During Sep-21, Airlink was eventually listed on PSX. Mr. Muzaffar Hayat (CEO) and the family own a majority stake in the Company while the remaining shareholding rests with the General Public, Insurance Companies, Banks, DFIs, NBFIs, and others.