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The Pakistan Credit Rating Agency Limited
Press Release

Date
16-Nov-21

Analyst
Anam Waqas Ghayour
anam.waqas@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 Assigns Initial Ratings to Etihad Alloys (Pvt.) Limited

Rating Type Entity
Current
(16-Nov-21)
Action Initial
Long Term BB+
Short Term A3
Outlook Developing
Rating Watch -

Etihad Group is setting up a steel industrial unit in Rahim Yar Khan adjacent to its already existing Sugar Mill – Etihad Alloys (Pvt.) Limited. The unit will have the melting capacity of 250,000 MT per annum. As per the management of the company the construction of the project is ~15% completed as of end Oct-21 and they are confident to achieve Commercial Operation Date (COD) by end of third Quarter/Early fourth Quarter 2022. Technical Associates is the Civil Contractor of the company. They have vast and proven experience record in the construction services. Primarily, Etihad Alloys will be manufacturing Steel Billets. The Project is being financed through a mix of debt and equity in the ratio of 80:20. The Company will be maintaining DSRA account providing coverage for six months on its financial obligations till maturity. The company has already executed the PPA with Etihad Power Generation Limited to meet its energy requirement.
Comfort is drawn from the group association and sponsors profiles which includes Etihad Sugar Mills Limited, having strong financial backing and experience in the industry. The ratings are dependent on the management's ability to successfully achieve its completion benchmarks and to improve its financial risk profile.

About the Entity
Etihad Alloys is private Limited company incorporated in 2021 under the companies Act 2017. Etihad Alloys is a venture of Etihad Group. Etihad group is one of the progressive industrial houses in Pakistan having different businesses like Sugar Mill, Construction Services and Real Estate. The industrial unit of Etihad Alloys will have the melting capacity of 250,000 MT per annum. Mr. Zahid Jamil is the chairman of the board and also the CEO of the company. He has vast experience of different industries. Diversified skill set and experience of multiple years reflected in the members’ profiles too and it will contribute strongly while establishing the presence of the company in the market.

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.