Press Release
VIS Reaffirms Sukuk Rating of Javedan Corporation Limited
Karachi, January 01, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the instrument rating of the Sukuk issued by Javedan Corporation Limited (‘JCL’ or the ‘Company’) at ‘AA-’ (Double A Minus). The medium to long-term rating of ‘AA-’ denotes high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Outlook on the assigned rating remains ‘Stable’. Entity ratings of JCL have also been reaffirmed at ‘A+/A-1’ with ‘Stable’ outlook. Previous rating action was announced on October 09, 2024.
Javedan Corporation Limited was incorporated in Pakistan on June 08, 1961, as a public limited company under the repealed Companies Act, 1913 (now Companies Act, 2017) and is listed on Pakistan Stock Exchange Limited. The registered office of the Company is located at Arif Habib Centre, 23, M.T Khan Road, Karachi. The Company has ceased its cement business since July 01, 2010 and the management has developed business diversification strategy for utilizing the Company’s land having area of 1,367 acres for developing a housing scheme, “Naya Nazimabad”, that includes bungalows, open plots, flat sites and commercial sites.
The Company had issued privately placed sukuk certificates aggregating to Rs. 2,993 mn for a period of 8 years (inclusive of 2 years grace period) to make payment of commercial land purchased in the year 2018. These carry markup at the rate of 6 months KIBOR plus 1.75 percent per annum and are redeemable in 12 equal installments starting from April 04, 2021 till October 04, 2026. All payments are being made semi-annually and on time, with the most recent payment, including both profit and principal, completed in September 2025.The facility is secured by equitable mortgage charge over land of Rs. 4,285.714 million against 49 plots and other assets (i.e., stand-by letter of credits, collection account and sponsors support agreements).
The assigned rating incorporates support from JCL’s sponsor, the Arif Habib Group. JCL’s business risk profile reflects its exposure to the cyclical nature of the real estate and construction industries, which are influenced by economic and political factors, fluctuations in purchasing power, volatility in raw material prices, and competitive pressures. The assessment also considers the Company’s well-established brand and its sizeable land holdings.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
Applicable Rating Criteria: Construction Industry
https://docs.vis.com.pk/Methodologies%202024/CONSTRUCTION-INDUSTRY-RATING-CRITERIA.pdf
Applicable rating criterion: Rating the Issue
https://docs.vis.com.pk/docs/Rating-the-Issue-Aug-2023.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf