The Pakistan Credit Rating Agency Limited
06-Dec-24
Analyst
Muhammad Atif Chaudhry
Atif.Chaudhry@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Rating Modifiers | Apr-24
- Methodology | Holding Company Rating | Jul-24
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-24
- Methodology | Debt Instrument Rating | Oct-24
Related Research
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PACRA Withdraws Entity Ratings of Hub Power Holdings Limited | Sukuk
| Issuer | Hub Power Holdings Limited |
| Instrument | Sukuk |
| Amount | PKR 6000 mln |
| Issuance Date | 12-Nov-20 |
| Tenor | 5 Years |
| Redemption Date | 12-Nov-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (06-Dec-24 ) |
Previous (31-May-24 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | AA+ |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
Hub Power Holdings Ltd. ("HPHL" or "the Company") issued a rated, secured, privately placed, listed Sukuk of PKR 6bln on 12-Nov-2020 to finance the working capital requirements of the Company. The tenor of the instrument was five years from the issue date, inclusive of a three-year grace period, and is issued at a discount, covering profit payments for the first two years. The profit was paid quarterly in arrears at a rate of 6-month KIBOR + 2.5% on the outstanding principal amount. The Company has exercised its right to early redemption and has repaid in full the outstanding principal amount and markup on November 12, 2024, one year before the maturity date.
Subsequent to the redemption of the Sukuk, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Hub Power Holdings Limited | Sukuk.
About
the Entity
Hub Power Holdings Ltd. operates as a fully-owned subsidiary of HUBCO. It was established in 2015 as a publicly unlisted entity in accordance with the Companies Ordinance, 1984 (currently governed by the Companies Act, 2017). Primary focus of the company revolves around capitalizing on emerging prospects within the energy sector. The Board is chaired by Mr. Aly Khan. Whereas, Mr. Kamran Kamal leads the company as CEO.