The Pakistan Credit Rating Agency Limited
26-Jun-24
Analyst
Muhammad Harris Ghaffar
harris.ghaffar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-23
- Methodology | Debt Instrument Rating | Dec-23
- Methodology | Rating Modifiers | Apr-24
Related Research
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PACRA Withdraws the Ratings of Nishat Mills Limited | PPSTS | PKR 10bln | Nov-23
| Issuer | Nishat Mills Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 10000 mln |
| Issuance Date | 23-Nov-23 |
| Tenor | 0.5 Years |
| Redemption Date | 23-May-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (26-Jun-24 ) |
Previous (05-Jan-24 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
The Company issued a Rated, Privately Placed, Unsecured, Non-convertible Shariah-compliant, Short-term Sukuk or Islamic commercial paper amounting to PKR 10,000mln in November 2023. The tenor of the instrument was 6 months. It carried a profit rate of 3MK+15bps. The instrument has been repaid, and hence redeemed. The Company has paid in full, all markup and outstanding principal amount. The Sukuk was redeemed in May 24.
Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the ratings of Nishat Mills Limited | PPSTS | PKR 10bln | Nov-23.
About
the Entity
Nishat Mills, established in 1951, is the largest textile composite unit and the country's leading exporter in the respective market. The Company’s majority stake (~51%) is owned by members of the Mansha family and Nishat Group companies. Nishat Group – a leading conglomerate – maintains a substantial presence in the country's financial sector and a strong foothold in the Textile, Cement, Power, and Hospitality sectors. The Group has also ventured into Pakistan's automobile assembly industry through a joint venture with Hyundai Motors. The board comprises seven members with two directors representing the sponsoring family – including the Chairman – Mr. Hassan Mansha and the CEO. The CEO, Mr. Umer Mansha, has been associated with Nishat Mills since 1994 and carries extensive experience in the textile industry.