The Pakistan Credit Rating Agency Limited
08-Nov-24
Analyst
Hashim Yazdani
hashim.yazdani@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-24
- Methodology | Independent Power Producer Rating | Jul-24
- Methodology | Debt Instrument Rating | Oct-24
Related Research
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PACRA Withdraws the Rating of Thar Energy Limited PP Short Term Sukuk - PKR 5.0 Bln | Apr-24
| Issuer | Thar Energy Limited |
| Instrument | Sukuk |
| Amount | PKR 5000 mln |
| Issuance Date | 18-Apr-24 |
| Tenor | 0.5 Years |
| Redemption Date | 18-Oct-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (08-Nov-24 ) |
Previous (21-Jun-24 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA- |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
Thar Energy Limited issued an unsecured, privately placed short term sukuk of PKR 5bln on April 18, 2024 to finance the Company's working capital requirements. The instrument, having a tenor of six months, carried a profit rate of 6M KIBOR + 0.60%. The Company has paid in full, all profit and outstanding principal amount. The Sukuk has been redeemed on October 18, 2024.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the ratings of Thar Energy Limited PP Short Term Sukuk - PKR 5.0 Bln | Apr-24.
About
the Entity
Thar Energy Limited was incorporated in Pakistan on May 17, 2016 as a limited company under the repealed Companies Ordinance, 1984. The 330 MW coal IPP is situated in the energy park located in Block II of the Thar coalfields in Sindh. HUBCO Group has the controlling interest of 60%, while Fauji Fertilizer and CMEC TEL Investment own 30% and 10%, respectively. Mr. Amjad Ali Raja has been appointed as the new CEO in July 2024. He has been associated with the HUBCO group since 2013. With an engineering background, Mr. Amjad brings 22 years of experience in the energy sector. The CEO reports to the Board of Directors (BoD), which consists of seven members. Mr. Kamran Kamal is the Chairman of the BoD and also serves as the CEO of HUBCO.