Analyst
Muhammad Atif Chaudhry
Atif.Chaudhry@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA withdraws the Rating of China Power Hub Generation Company (Pvt.) Limited | PPSTS-2 | PKR 5bln | Dec-22 | Redeemed
Issuer | China Power Hub Generation Company (Pvt.) Limited |
Instrument | PPSTS-2 |
Amount | PKR 5000 mln |
Issuance Date | 07-Dec-22 |
Tenor | 0.5 Years |
Redemption Date | 07-Jun-23 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (03-Aug-23 ) |
Previous (02-Feb-23 ) |
|
Action | Redeem | Initial |
Long Term | - | AA+ |
Short Term | - | A1+ |
Outlook | Stable | |
Rating Watch | - | - |
China Power Hub Generation Company (Pvt.) Limited ("CPHGC") has issued a Rated, Unsecured, Privately Placed, Short-Term Sukuk (PPSTS- 2) of PKR 5,000mln on 07-Dec-22 to finance the Company’s working capital requirements. The tenor of the instrument was 6 months and carried a profit rate of 6MK+145bps. The instrument has been repaid, hence redeemed. The Company has paid in full, all markup and outstanding principal amount.
The Sukuk has been redeemed on 07-Jun-23. Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of China Power Hub Generation Company (Pvt.) Limited | PPSTS-2 | PKR 5bln | Dec-22.
About
the Entity
State Power Investment Company (52.5%) in collaboration with the Hub Power Company (47.5%) has setup a 1320MW coal-fired power plant in 2015 at Hub, Baluchistan. It's construction was completed in 2018 and the plant commenced its operations in 2019. Power Purchase Agreement (PPA) is signed for thirty years. Established and registered in Hong Kong in 1994, State Power International Holding Ltd. is primarily focused on the development, construction, operation, overseas investment, and financing of power supply programmes. Whereas, HUBCO is one of the first and largest Independent Power Producers (IPP) in Pakistan to be financed by the private sector in Southern Asia. The BoD comprises of seven members, four members represent China Power International (Pakistan) Investment Limited, while three represents Hub Power Holdings Limited. The management team is led by Mr. Ren Lihui, appointed as CEO. He is accompanied by a team of qualified and experienced Chinese and Pakistani individuals.