Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA withdraws The Rating of K-Electric | PPSTS-4 | Mar-22
Issuer | K-Electric Limited |
Instrument | PPSTS-4 |
Amount | PKR 5000 mln |
Issuance Date | 25-Mar-22 |
Tenor | 0.6 Years |
Redemption Date | 25-Sep-22 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (10-Nov-22 ) |
Previous (18-May-22 ) |
|
Action | Redeem | Initial |
Long Term | - | AA |
Short Term | - | A1+ |
Outlook | Stable | |
Rating Watch | - | - |
K-Electric Limited (the "Company") issued an unsecured, privately placed, short-term sukuk K-Electric | PPSTS-4 | Mar-22 ("PPSTS-4") of PKR 5,000mln on March 25, 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+70bps. The Company has paid in full, all markup and outstanding principal amount in a timely manner. The PPSTS-4 has been redeemed on September 25, 2022.
Subsequent to the redemption of the PPSTS-4, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric Limited | PPSTS-4.
About
the Entity
K-Electric, a vertically-integrated power utility, has been in operations for more than a century. Total installed capacity of K-Electric is 2,267MW, having an arrangement with National Grids for 1,400 MW. At end-jun21, KES Power Limited (KESP) held 66.4% share in K-Electric, while Government of Pakistan owned 24.4%. KES Power is a consortium of Al-Jomaih Group of KSA, NIG of Kuwait and IGCF, a private equity fund formerly managed by Abraaj comprising several Middle East institutional investors. KES Power has entered into a share purchase agreement with Shanghai Electric Power Company Limited (SEP) for sale of up to 66.4% shares of K-Electric against a consideration of US$ 1.77bln. The transaction is in process and will close once customary closing conditions and requisite regulatory approvals are obtained. K-Electric has thirteen member board. Mr. Moonis Alvi, CEO is associated with the company since 2008. He is supported by an experienced team