Analyst
Sana Shameen
sana.shameen@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
K-Electric Limited redeems Islamic Commercial Paper upto PKR 9,491mln | Sep-19 fully redeemed; rating withdrawn
Issuer | K-Electric Limited |
Instrument | CP |
Amount | PKR 9491 mln |
Issuance Date | 19-Sep-19 |
Tenor | 0 Years |
Redemption Date | 19-Mar-20 |
Outstanding Amount | - |
Rating Type | Debt Instrument | |
Current (12-May-20 ) |
Previous (25-Nov-19 ) |
|
Action | Redeem | Maintain |
Long Term | - | AA |
Short Term | - | A1+ |
Outlook | - | Developing |
Rating Watch | - | Yes |
Under the Islamic Commercial Paper program, K-Electric issued two Islamic Commercial papers: ICP1 & ICP2 in August-18 and March-19. After the maturity of the two instruments, K-Electric issued the third unsecured Islamic commercial paper of PKR 9,491mln to finance the ongoing working capital requirements. The Commercial Paper had a tenor of six months, carried a profit rate of 6MK + 130bps and was scheduled to be redeemed at face value on the maturity date. The instrument due for the final redemption in March-20, has been fully redeemed.
Subsequent to the completion of the redemption process, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of K-Electric Limited | Islamic Commercial Paper of PKR 9.4bln | Sep-19.
About
the Entity
K-Electric, a vertically-integrated power utility, has been in operations for more than a century. At end-Jun19, KES Power Limited (KESP) held 66.4% share in K-Electric, while Government of Pakistan owned 24.4%. KES Power majority is owned (53.8%) by Abraaj Capital (Private Equity Group) with the balance held by a group of investors (Al Jomaih, Saudi Arabia and NIG, Kuwait). 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.