The Pakistan Credit Rating Agency Limited
28-Nov-25
Analyst
Faiqa Qamar
faiqa.qamar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Apr-25
- Methodology | Rating Modifiers | Apr-25
- Methodology | Corporate Rating | Jul-25
- Methodology | Debt Instrument Rating | Sep-25
Related Research
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PACRA Withdraws the Ratings of Engro Fertilizer Limited - PPSTS - PKR 20bln - May-25
| Issuer | Engro Fertilizers Limited |
| Instrument | Privately Place Short Term Sukuk |
| Amount | PKR 20000 mln |
| Issuance Date | 14-May-25 |
| Tenor | 0.5 Years |
| Redemption Date | 14-Nov-25 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (28-Nov-25 ) |
Previous (29-May-25 ) |
|
| Action | Redeem | Initial |
| Long Term | - | AA |
| Short Term | - | A1+ |
| Outlook | Stable | |
| Rating Watch | - | - |
Engro Fertilizer Limited (‘EFert’ or ‘the Company’) issued a rated, unsecured, privately placed short-term Sukuk (PPSTS) of PKR 20bln on 14-May-25 to finance the working capital requirement of the Company. The tenor of the instrument was 6 months and carried a profit rate of 3MK less 0.15%. The instrument has been redeemed on 14-Nov-25. The Company has paid in full, all markup and outstanding principal amount.
In light of the successful redemption, PACRA has withdrawn the ratings of Engro Fertilizer Limited - PPSTS - PKR 20bln - May-25.
About
the Entity
EFert was incorporated in 2009 as a listed company with a primary objective of manufacturing and marketing urea and other fertilizers. The Company has three production facilities, with the designed annual capacity of the base plant is 975,000 MT, Enven is 1,300,000 MT, and NPK is 100,000 MT. While DAP is imported. EFert is majorly (~56.3%) owned by Engro Holdings through Engro Corporation Ltd., while insurance companies hold ~8.3%, followed by mutual funds (~2.2%) and financial institutions (~1.8%). The general public holds ~20.9% stake. Mr. Ahsan Zafar Syed chairs the Board, while Mr. Ali Rathore heads the Company as the CEO.
About
the Instrument
EFert issued a Privately Placed Short Term Sukuk (PPSTS) with an issue size of PKR 20bln, including a green shoe option of PKR 5bln, for a tenor of 6M on 14-May-25. It carries a profit rate of 3MK less 0.15% and has been repaid in a bullet payment at maturity. The proceeds replaced the utilization under existing short-term bank limits obtained to manage EFert's working capital requirements.