The Pakistan Credit Rating Agency Limited
18-Jan-23
Analyst
Muhammad Atif Chaudhry
Atif.Chaudhry@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Corporate Rating | Jun-22
- Methodology | Debt Instrument Rating | Jun-22
- Methodology | Rating Modifiers | Jun-22
Related Research
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PACRA withdraws the Rating of Engro Polymer & Chemicals Limited | Sukuk | Jan 19
| Issuer | Engro Polymer & Chemicals Limited |
| Instrument | Sukuk |
| Amount | PKR 8750 mln |
| Issuance Date | 11-Jan-19 |
| Tenor | 7.5 Years |
| Redemption Date | 27-Dec-22 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (18-Jan-23 ) |
Previous (18-Jul-22 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | AA |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
Engro Polymer and Chemicals Limited issued a secured, OTC listed & Privately placed Sukuk amounting to PKR 8,750mln in Jan'19. The tenor of the instrument was seven years and six months (7.5 years) and carried a profit rate of 3MK + 0.9%. The instrument has been early repaid, hence redeemed. The Company has paid in full, all markup and outstanding principal amount. The Sukuk has been redeemed on December 27, 2022. Hence, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Engro Polymer & Chemicals Limited | Sukuk | Jan 19.
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About
the Entity
EPCL, established in 1997, started commercial production in 1999. The Company is listed on Pakistan Stock Exchange. EPCL is primarily involved in the manufacturing, marketing, and distribution of PVC and its allied products. EPCL is a subsidiary of Engro Corporation Limited (ECL) having a majority stake (56%). The other major shareholder is Mitsubishi Corporation (11%). The Board comprises of 9 members including the CEO - Executive Director, one member represents Mitsubishi Corporation, three are independent directors and the remaining are Non-Executive Directors. Mr. Ghiasuddin (CEO) of Engro Corp.