Press Release

VIS Finalizes Short Term Sukuk 2 Rating of JDW Sugar Mills Limited

Karachi, March 4, 2024: VIS Credit Rating Company Limited (VIS) has assigned entity ratings of ‘A+/A-1’ (Single A Plus/A One) to JDW Sugar Mills Limited (‘JDWS’ or the ‘Company’). In line with the entity’s short-term rating, VIS has assigned final rating of A-1 (A-One) to the Company’s Short Term Sukuk-2 (STS-2). Short-term rating of A-1 reflects high certainty of timely payment; liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. The last rating action was announced on February 07, 2024.

The Company is part of the JDW Group, which has presence in sugar, corporate farming and power generation. JDWS is principally engaged in manufacturing of sugar, production of electricity, and managing corporate farms. The assigned ratings incorporate JDWS market position as the leading player in the country’s sugar industry, significant experience of sponsors in the sugar and agriculture sector and a professional management team. The Company has longstanding relationships with growers along with focus on research activities in sugarcane development.

JDWS issued an unsecured Short Term Sukuk (STS-2) of PKR 5 bln on February 15 2024.Proceeds of the Sukuk will be utilized to meet the working capital requirements. The instrument has tenor of up to 6 months maturing for repayment in bullet on August 15, 2024. JDWS however, has option for prepayment of the entire outstanding facility amount or part thereof through Company’s internal cash flows with fifteen (15) days prior written notice. The assigned rating is contingent on the structure of the Sukuk and improving financial metrics.

For further information on this ratings announcement, please contact Mr. Muhammad Subhan (Ext: 202) or the undersigned (Ext: 208) at 021-35311861-64 or email at info@vis.com.pk.








Syed Asif Ali
Executive Director

Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright March 04, 2024 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.