The Pakistan Credit Rating Agency Limited
15-Jan-25
Analyst
Ali Arslan Malik
Ali.Arslan@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Rating Modifiers | Apr-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 Mughal Energy Limited | PP Sukuk | PKR 2.5bln | TBI
| Rating Type | Debt Instrument | |
|
Current (15-Jan-25 ) |
Previous (19-Jul-24 ) |
|
| Action | Withdraw | Preliminary |
| Long Term | - | A+ |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
Mughal Energy Limited (“MEL” or “the Company”) was intended to issue a Long-Term Rated, OTC Listed, Privately Placed, Secured Islamic Certificate of PKR 2.5 billion, including a PKR 1 billion Green Shoe Option, in July 2024 to finance its capital investment plan. In line with this plan, PACRA assigned a preliminary rating to the Mughal Energy Limited | PP Sukuk | PKR 2.5 billion | TBI in July 2024. The Company has revised the terms and conditions of the Sukuk.
As a result of this structural modification, the previously assigned rating is no longer applicable. In line with the consensus of MEL’s management, PACRA has decided to withdraw the Sukuk rating.
About
the Entity
MEL was incorporated as a public unlisted company in Pakistan on August 19, 2012. In November 2023, MEL was acquired by Mughal Iron and Steel Industries Limited (MISIL) and became a wholly owned subsidiary. Subsequently, on June 13, 2024, MEL was listed on the Growth Enterprise Market (GEM) Board of the Pakistan Stock Exchange Limited (PSX), with a free float share of 10%. The Board is chaired by Mr. Mirza Javed Iqbal, who brings over four decades of experience in the steel and iron industry. The CEO, Mr. Khurram Javed, has been actively involved in the family business and supported by a team of experienced professionals with the necessary technical expertise and industry knowledge.