Press Release
JCR-VIS assigns Preliminary Rating of AA- to the Sukuk of Treet Corporation Limited
Karachi, April 10, 2015: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned ‘Preliminary’ rating of ‘AA-’ (Double A Minus) with a ‘Stable’ Outlook to the proposed Sukuk of Treet Corporation Limited (TCL). The preliminary rating will be converted to a final rating upon review of relevant signed legal documents.
TCL plans to issue Sukuk of Rs. 539.5m at face value of Rs. 40/- each. The objective of the issue is to meet working capital requirements of the company. The Sukuk is proposed to be issued in perpetuity to existing shareholders in the ratio of one Sukuk against four ordinary shares. The instrument will have a put option whereby it may be redeemed in the form of shares or cash. Redemption in cash, however, will be time bound (through put option) and can be made in full or partial payments after expiry of three years (and thereafter after every third anniversary of such date). Profit payment will be made to Sukuk holders in cash on annual basis. The profit for each Sukuk will not be less than 6% of the Musharakah profit of the relevant financial year. Musharakah loss if any, for a Musharakah period will be shared between investors and the issuer. The company will have no call option to redeem the Sukuk in cash or to convert them into ordinary shares. Sukuk will be secured by way of first pari passu Hypothecation charge of Rs. 680m over present and future current assets.
For further information on this rating announcement, please contact Mr. Javed Callea at 021-35311861-70 or Mr. Maimoon Rasheed at 042-36610681-84.
Faryal Ahmad Faheem
Executive Director
Applicable Criteria: Rating the Issue (Sept 2014) http://www.jcrvis.com.pk/Images/criteria_instrument.pdf