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The Pakistan Credit Rating Agency Limited
Press Release

Date
10-Dec-19

Analyst
Usama Liaquat
usama.liaquat@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 Debt Instrument Rating of Pharmagen Limited | PP Sukuk

Rating Type Debt Instrument
Current
(10-Dec-19 )
Previous
(12-Jul-19 )
Action Withdraw Preliminary
Long Term - A-
Short Term - -
Outlook - Stable
Rating Watch - -

The company proposed to raise a privately placed, listed, rated and secured sukuk of PKR 1 bln. The instrument had a tenure of 5 years from the date of disbursement, with a profit rate of 3M-KIBOR+ 2.5%.
Pharmagen does not intend to issue the Sukuk, thereby PACRA withdraws the rating with immediate effect.

About the Entity
Pharmagen Limited is a public limited-unquoted pharmaceutical company operating in Pakistan since 1990. The company is engaged in the manufacturing and sale of pharmaceutical products and over the years it has become the leading producer of APIs (Active Pharmaceutical Ingredients) in Pakistan. Pharmagen is majority owned by Parvez Hussain Sufi’s family (~60%), while other strategic partners include Rasheed Khan’s family (~15.2%), and Maj. Gen. (Retd.) Rahim Khan’s family (~2.1), along with trusts, Naghat Rasheed Trust and Kashmir Education Foundation holding (~1.8%) and (~20.9%) respectively.

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.