The Pakistan Credit Rating Agency Limited
18-Sep-25
Analyst
Sohail Ahmed Qureshi
sohail.ahmed@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Apr-25
- Methodology | Rating Modifiers | Apr-25
- Methodology | Debt Instrument Rating | Oct-24
Related Research
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Pak Elektron Limited - PPSTS II - PKR 2bln - Dec-24
| Issuer | Pak Elektron Limited |
| Instrument | PPSTS-2 |
| Amount | PKR 2000 mln |
| Issuance Date | 05-Dec-24 |
| Tenor | 0.5 Years |
| Redemption Date | 05-Jun-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (18-Sep-25 ) |
Previous (13-Jan-25 ) |
|
| Action | Redeem | Initial |
| Long Term | - | A+ |
| Short Term | - | A1 |
| Outlook | Stable | |
| Rating Watch | - | - |
Pak Elektron Limited (PEL) issued a Rated, Secured, Privately Placed, Short-Term Sukuk in December 2024. The Sukuk carried a markup of 6MK + 1.00% with a tenor of six months. The proceeds were utilized to finance the working capital requirements of the Company. The instrument was secured by a first joint pari passu hypothecation charge over the current assets of the Issuer with a 25% margin. The Sukuk was structured to be redeemed in a bullet payment at maturity. Accordingly, both principal and markup were duly settled on June 5, 2025. The redemption process has been verified through an Auditor’s Certificate along with supporting bank statements, confirming that an aggregate amount equivalent to the full issue size, along with profit, was transferred to the designated account and subsequently paid to the investors.
In light of the successful redemption, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Pak Elektron Limited | PPSTS II | PKR 2.0bln | Dec-24, which was redeemed on June 5, 2025.
About
the Entity
PEL, incorporated in 1956, is a listed public limited Company. It is principally engaged in the manufacturing and sale of electrical capital goods and domestic appliances. Saigol Group owns shareholding in the Company (~51.0%) through family members. Other interests of the group include power, textile and real estate. Mr. Naseem Saigol is the Chairman of the 8 members Board. Saigol family has prominent presence on Board. Mr. Murad Saigol, CEO, monitors all the strategic and operational affairs of the Company. He is supported by an experienced management.