Analyst
Mubasher Bhatti
mubasher.bhatti@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
Hub Power Company Limited | Short-Term Sukuk fully redeemed; rating withdrawn
Issuer | The Hub Power Company Limited |
Instrument | Privately Place Short Term Sukuk |
Amount | PKR 4500 mln |
Issuance Date | 02-Apr-19 |
Tenor | 0 Years |
Redemption Date | 02-Oct-19 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (31-Oct-19 ) |
Previous (13-May-19 ) |
|
Action | Redeem | Initial |
Long Term | - | AA+ |
Short Term | - | A1+ |
Outlook | Stable | |
Rating Watch | - | - |
Final payments along with mark up @3MK+1.00% of Short-Term Sukuk issued by Hub Power Company Limited issued in Apr-19 for PKR 4,500mln has been completed. The instrument was repaid in two quarterly installments starting Jun-19. Final installment of PKR 4,121mln (Sep-19) has been paid and the instrument has been fully redeemed.
Subsequent to the completion of the redemption process, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Hub Power Company Limited | Short-Term Sukuk.
About
the Entity
Hubco, a listed company, was incorporated in 1991. During the year, Dawood group, largest shareholder along with its associates sold its stake to Mega Conglomerate (Pvt.) Ltd, making Mega Conglomerate single largest shareholder (~19%). Mega Conglomerate (Pvt.) Ltd (19.4 %) is the single largest shareholder, followed by ABL (9.7%), Fauji Foundation (8.5%) and NBP (5%). Hubco holds 100% stake in Narowal Energy Ltd which operates a 225MW capacity oil-fired power plant at Narowal and 75% controlling interest in Laraib Energy Ltd that operates 84 MW hydel power plant. The BoD comprises eleven-members including the CEO of Hubco. BoD includes three representatives from Mega Conglomerate. Mr. Khalid Mansoor, the CEO, carries over three decades of experience in Energy & Petrochemical sectors in leading roles. He is supported by a team of experienced professionals.