The Pakistan Credit Rating Agency Limited
06-May-25
Analyst
Noor Fatima
noor.fatima@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Rating Modifiers | Apr-24
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-24
- Methodology | Debt Instrument Rating | Oct-24
Related Research
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PACRA withdraws the ratings of Mughal Iron & Steel Industries Limited | PP Sukuk | PKR 2.5bln | Dec-23
| Issuer | Mughal Iron & Steel Industries Limited |
| Instrument | Sukuk |
| Amount | PKR 2500 mln |
| Issuance Date | 28-Dec-23 |
| Tenor | 1.25 Years |
| Redemption Date | 28-Mar-25 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (06-May-25 ) |
Previous (06-Feb-25 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | AA- |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
Mughal Iron & Steel Industries Limited issued a Rated, Privately Placed, Secured Islamic Certificate (“Sukuk”) of PKR 2.5bln on Dec 28, 2023 to finance the Company’s working capital requirements. The tenor of Sukuk was 15 months and carries a profit rate of 3MK+145bps. The comfort for the rating was drawn from the security structure of Sukuk which was strengthened by i) Pari-passu hypothecation charge over all present & future current assets with a margin of 25% ii) A debt payment account (DPA) was maintained with an agent bank under exclusive charge & right of set-off in favor of Sukuk holders. The profit payment was made on quarterly basis and entire principal in bullet payment.
The Sukuk was redeemed on 28th March, 2025. Consequently, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of Mughal Iron & Steel Industries Limited | PP Sukuk | PKR 2.5bln | Dec-23.
About
the Entity
Mughal Iron & Steel Industries Limited is a public limited Company incorporated in 2010 and is primarily engaged in the manufacturing and sale of billets, girders, and rebars. Currently, a nine-member BoD is monitoring the overall functioning under the chairmanship of Mr. Mirza Javed Iqbal. Mr. Khurram Javed serves as the CEO of the Company, bringing over a decade of professional experience to the role.