Press Release
JCR-VIS reaffirms rating of Sukuk issue of Amtex Limited
Karachi, December 27, 2010: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the medium to long-term rating of A (Single A) assigned to the five year privately placed sukuk of Rs. 650m, issued by Amtex Limited (Amtex). The sukuk is fully secured via a bank guarantee. The issue is further secured against second charge on all present and future fixed assets excluding freehold land and building on freehold land of the company. The TFC is redeemable in quarterly installments and is to be fully redeemed by October 2012.
In general, the value added textile sector in Pakistan has so far been able to transfer the increased cost of escalating cotton prices and other costs to international buyers. However, margins may come under pressure in future as the cost of rising interest rates and high energy costs, locally may not be absorbed in the international market where competition remains intense. The flood situation has also increased the demand / supply gap for cotton, which may increase import requirement. With continuous pressure on the rupee, this option remains an expensive one.
For further information on this rating announcement, please contact please contact Mr. Javed Callea (Ext: 501) at 021-35311861-70 or fax to 021-35311873 or Mr. Maimoon Rasheed at 042-36610181.
Faheem Ahmad
President & CEO