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The Pakistan Credit Rating Agency Limited
Press Release

Date
02-Sep-22

Analyst
Madiha Sohail
madiha.sohail@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 Rating of Lucky Electric Power Company Limited | ICP-2 | PKR 5bln | Jan-22

Issuer Lucky Electric Power Company Limited
Instrument ICP - 2
Amount PKR 5000 mln
Issuance Date 12-Jan-22
Tenor 0.6 Years
Redemption Date 11-Jul-22
Outstanding Amount -

Rating Type Debt Instrument
Current
(02-Sep-22 )
Previous
(16-Mar-22 )
Action Redeem Initial
Long Term - AA-
Short Term - A1
Outlook Stable
Rating Watch - -

Lucky Electric Power Company Limited (the "Company" or "LECP") has issued unsecured privately placed Islamic Commercial Paper (ICP-2) of PKR 5,000mln on January 12, 2022. The purpose of the instrument was to finance the Company's working capital requirement. The tenor of the instrument was 6 months and carried a profit rate of 6MK+30bps. The Company has paid in full, all markup and outstanding principal amount in timely manner. The ICP-2 has been redeemed on July 11, 2022.
Subsequent to the redemption of the ICP-2, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Lucky Electric Power Company Limited | ICP-2 | PKR 5bln | Jan-22.

About the Entity
Lucky Electric Power Company Limited, incorporated in Pakistan on June 13, 2014 as public unlisted company at Port Qasim, Karachi, Sindh. The capital structure comprises 25% equity and debt financing constitutes 75% of the initial estimated project cost; ~USD 883mln, financed from local and foreign financial institutions. Local currency facilities have been obtained from multiple consortium of banks aggregating to PKR 65.95bln and have a 10 year tenure starting June 2022 and to be paid in 40 quarterly installments. The foreign facility is USD 210mln. Out of which USD 20mln will be paid quarterly and USD 190mln, will be paid semi-annually. Lucky Cement Limited owns 100% shareholding of Lucky Electric Power Company Limited. Lucky Cement Limited stands as the flagship company of Yunus Brothers Group. The Company’s board comprises of seven directors, including CEO, all the board members represent Lucky Cement. Mr. Muhammad Ali Tabba, the Chairman, has been associated with the Group in different capacities for nearly three decades and is currently chairing the Board with his visionary leadership and vast experience.

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.