Credit agency matures K-Electric's Rs5bn short-term sukuk rating

April 07, 2023 (MLN): VIS Credit Rating Company Limited (VIS) has matured the rating of K-Electric Limited’s (KE) Short Term Sukuk (STS-10) issue amounting to Rs5 billion, said a press release issued by the rating agency.

The issuance and maturity dates of the instrument were October 5, 2022, and April 5, 2023, respectively. The previous rating action was announced on October 14, 2022.

Earlier this month, VIS assigned a preliminary rating of A-1+ (Single A One Plus) to KE’s proposed Short Term Sukuk (STS-16).

A short-term rating of A-1+ reflects the highest certainty of timely payment; short-term liquidity, including internal operating factors and/or access to alternative sources of funds, is outstanding and safety is just below risk-free Government of Pakistan’s short-term obligations.

KE plans to issue an unsecured, privately placed STS (STS-16) issue of up to Rs5 billion (inclusive of the green shoe option of Rs2b). The tenor of STS-15 is up to 6 months from the date of drawdown and will be redeemed in bullet at maturity. The proceeds of the issue will be utilized for KE’s working capital requirements.

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