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 ThalNova Power Thar (Pvt.) Limited | PPSTS | PKR 5bln | TBI
| Rating Type | Debt Instrument | |
|
Current (08-Nov-24 ) |
Previous (31-May-24 ) |
|
| Action | Withdraw | Preliminary |
| Long Term | - | AA- |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
PACRA had previously assigned preliminary ratings to ThalNova Power Thar (Pvt.) Limited | PPSTS | PKR 5bln | TBI in May 2024. The management had planned to issue the instrument to finance its working capital needs. However, given the improving cash flow position of the Company and smooth payments from CPPAG against outstanding receivables, the bond was not issued within the stipulated timeline. Furthermore, the management has no plans of issuing the instrument.
Subsequent to the management decision, PACRA is withdrawing the instrument rating with immediate effect.
About
the Entity
ThalNova Power Thar (Pvt.) Limited was incorporated in Pakistan on April 18, 2016 as a limited company under the repealed Companies Ordinance, 1984. The 330 MW coal IPP is being constructed in the energy park located in Block II of the Thar coalfields in Sindh. HUBCO holds 38.3% of the ownership stake and controlling interest through Hub Power Holdings Limited (HPHL), while the remaining shareholding is held by Nova Powergen Limited (24.70%), Thal Power (Pvt) Limited (26.00%), CMEC ThalNova Power Investments Limited (10.00%), and Descon Engineering Limited (1.00%). 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.