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The Pakistan Credit Rating Agency Limited
Press Release

Date
15-Jul-22

Analyst
Anam Waqas Ghayour
anam.waqas@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA withdraws the entity ratings of Gul Ahmed Energy Limited.

Rating Type Entity
Current
(15-Jul-22 )
Previous
(10-Nov-21 )
Action Withdraw Maintain
Long Term - A-
Short Term - A2
Outlook Stable
Rating Watch - -

Subsequent to the management's decision to discontinue the entity ratings of Gul Ahmed Energy Limited, PACRA withdraws the entity ratings of Gul Ahmed Energy Limited with immediate effect.

About the Entity
Gul Ahmed Energy Limited, successfully implemented a 136.17 MW RFO private power project under the 1994 Power Policy of the GoP on a Build, Own, Operate (BOO) basis. Gul Ahmed Energy Group holds 67.68% shares, second largest shareholders are the Toyota Tsusho Corporation owning 18.62%, Tomen Power (Singapore) P.T.E Limited owns 12.78% of GAEL and Wartsila owns 0.92%. Gul Ahmed Energy Group is one of Pakistan’s leading business groups and has been in existence since 1948. It has a highly diversified portfolio of businesses and investments. BoD comprises of eight members including the Chief Executive Officer. The board members are professionals with experience in managing the business affairs of companies in different sectors. The board includes six representatives of Gul Ahmed Energy Group, one representatives of the Toyota Tsusho Corporation and one representative of Tomen Power (Singapore) P.T.E Ltd. Mr. Danish Iqbal is the CEO of the company. Mr. Danish has over twenty years of experience in the industry. The total estimated cost of the project was USD 140mln. Debt financing constitutes 70% of the project cost i.e. USD 97mln, which was financed from foreign financial institutions IFG contributed USD 62 million and remaining USD 35 million was contributed from ING bank. All the debt of the company has been fully paid in 2009.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.