KARACHI: JCR-VIS Credit Rating Company Ltd has assigned preliminary rating of ‘AA+’ (Double A Plus) to the proposed Sukuk issue of K-Electric Limited (KE). Outlook on the assigned rating is ‘Stable’.
As an integrated utility company providing electricity to the key metropolitan city of Pakistan, KE is planning to issue Sukuk of Rs 22 billion (inclusive of a green shoe option of Rs 2 billion).
Proceed of the Sukuk issue will largely be utilized towards repayment of the Company’s existing long term debt.
The Company expects to be able to raise fresh funding at improved pricing, given the improvement in risk profile of the entity itself over time.
The proposed Sukuk issue will have a tenor of 7 years including grace period of two years. Principal repayment will be made in 20 equal quarterly installments.