PACRA Assigns Initial Ratings to Etihad Alloys (Pvt.) Limited

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.